Episode 30
Vitor Constancio On ECB Inflation Targeting, Monetary Policy Limits And Europe Risks
Macro Hive Conversations With Bilal Hafeez
October 2, 20201h 1m
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Show Notes
Vitor was the Vice President of the ECB until a few years ago. And before that held numerous high-profile roles including being Portugal's finance minister, the central bank governor of Portugal and negotiating the entry of Portugal into the EEC – the forerunner to the EU. Vitor is currently President of the Council of ISEG at the University of Lisbon and a Professor at the Navarra University in Madrid.. In this podcast we discuss:
- The evolution of monetary policy since the 1970s
- Is there a limit to the size of central bank's balance sheet?
- How low inflation accelerated ECB QE
- Why central banks cannot control inflation perfectly
- Does the ECB target the euro
- Views on the Fed's new average inflation target and whether ECB will follow
- Why QE and loose fiscal policy is not MMT
- Should central banks target income inequality
- How the ECB can support climate change policies
- Why fiscal policy is needed more than monetary policy
- And Twitter footnote: Europe's two downside risks – delays in recovery fund disbursements and credit supply issues.