In light of the handover from the European Central Bank President Mario Draghi to Christine Lagarde in November 2019, this book provides an in-depth analysis of the events which unfolded since the euro area sovereign debt crisis in 2010 up until today. The book focuses on the far-reaching implications of the last decade, shedding light on a wide spectrum of political, economic and financial aspects of the European poly-crises and how monetary policy reacted to these challenges. The book places particular emphasis on the tensions that the supranational central bank was subject to during this period, and on their outcomes in terms of the policies, their legitimacy, and their public reception. As such, this book will be relevant not only to understand the political implications of the past crisis but also, and foremost, in understanding "what is next".
Author(s): Corrado Macchiarelli, Mara Monti, Claudia Wiesner, Sebastian Diessner
Publisher: Palgrave Macmillan
Year: 2020
Language: English
Pages: 185
City: Singapore
Foreword
Contents
About the Authors
List of Figures
List of Tables
Chapter 1: The European Central Bank Between the Financial Crisis and Populisms
1.1 Introduction
1.2 The Motivation in Brief: Why a Book on the European Central Bank, Financial Crisis, and Populisms?
1.2.1 A Short Recap: How the Sovereign Debt Crisis Unfolded
1.3 Two Essentially Contested Concepts: Populism and Legitimacy
1.3.1 Populism and Its Relation to Euroscepticism
1.3.2 Legitimacy and Its Application in the Context of the E(M)U
1.4 What to Expect from This Book
References
Chapter 2: The Sovereign Crisis, Its Aftermath, and How Monetary Policy Has Changed
2.1 Introduction
2.2 The Transition from Trichet to Draghi
2.2.1 The Trichet Era: Inflation First
2.2.2 The Origin of Unconventional Monetary Measures Pre-Draghi
2.2.3 The Draghi Era and “Whatever It Takes”
2.2.4 The Impact of “Whatever It Takes” and Beyond
2.2.5 A Speculative Reaction
2.3 Evaluating the Efficacy and Effectiveness of the ECB’s Unconventional Measures Post-OMT
2.3.1 The Negative-Interest Rates Environment
2.3.2 TLTROs
2.3.3 An Evaluation of the ECB Asset Purchase Programme
2.3.4 Forward Guidance as a Measure of Central Bank’s Consistency
2.3.5 Central Bank Communication
2.4 The Big Picture
References
Chapter 3: The EU’s Crisis Governance Versus Populism
3.1 Introduction
3.2 The EU Political System and Its Democratic Deficits
3.3 The Lack of a Lender of Last Resort
3.3.1 Creating an Intergovernmental Parallel Structure
3.4 Fiscal Policy Without Politics: Six-Pack and Two-Pack
3.4.1 Six-Pack and Two-Pack
3.4.2 Legitimation and Effects of Six-Pack and Two-Pack
3.5 Judging Legitimacy Problems
3.6 Bad Politics or Bad Economics? Opening a Breach to Populism
References
Chapter 4: The Fiscal and Political Implications of the ECB’s Non-conventional Roles
4.1 Introduction
4.2 The ECB’s Enhanced Role During the Decade of 2009–2019
4.2.1 The ECB’s “Inner” Role
4.2.2 Monetary-Fiscal Policy Interactions
4.2.3 Is the ECB Facing a Dilemma Between Interventionism and Independence?
4.2.4 The ECB’s “Outer” Role
4.3 What’s Next
References
Chapter 5: The Growing Challenge of Legitimacy Amid Central Bank Independence
5.1 Introduction
5.2 The ECB’s Legitimacy and Independence: Procedural and Perceptual Dimensions of Input, Output, and “Throughput”
5.3 The ECB’s Procedural and Perceived Legitimacy in Practice
5.3.1 Further Enhancing the ECB’s Throughput Legitimacy
5.3.2 The ECB and Public Perceptions
5.4 Conclusion
List of Interviewees
Code: Institution, Position, Place, Date
References
Chapter 6: How Popular Has the ECB Been? Popularity, Protest, and Populism Post Crisis
6.1 Introduction
6.2 Citizens, Support, and Trust in the EU During the Financial Crisis: What Do Eurobarometer Data Tell?
6.3 Socio-Economic Sources of Political Discontent? Austerity and Beyond
6.4 The Twin Challenge of Popular Protests and Populist Pressures Post Crisis
6.4.1 Popular Protests on the Squares and Streets: A Growing Demand for Populist Policies?
6.4.2 Populism as the Flipside of Popular Protest: A Growing Supply of Populist Policies?
6.5 The Growing Multi-Level Challenge of Populism for the ECB
References
Chapter 7: Conclusion: Going Forward—What Are the Political and Economic Challenges Ahead?
7.1 Introduction
7.2 Political Challenges for the ECB in the Post-Draghi Era
7.3 Monetary Policy Challenges and the ECB’s Ammunition in the Post-Draghi Era
7.3.1 Expanding the Monetary Stimulus by Increasing the Risks: Several Alternatives
7.3.2 Credit and Political Risks
7.4 The Future of the E(M)U
7.4.1 What the ECB Can and Cannot Do
7.4.2 Completing the Euro Area: From Austerity to Democratic Fiscal Integration?
References
Epilogue: The 2020 Global Pandemic and Its Fallout for the ECB and the Euro Area
A Supply-Cum-Demand Shock
The ECB to the Fore (Again)
Is “No Monetary Finance” a Fiction?
“Something’s Gotta Give”
Whither the ECB and Populism After COVID-19?
Index
