Joint Contribution for the ECB-MC Model

“Policy models cannot be expected to have the same tight structure as theory models. […] Different classes of macro models are needed for different tasks.” (Olivier Blanchard)   During the Annual Research Conference organised by the ECB on the 25th and 26th of September 2017, Vítor Constâncio, Vice-President of the ECB, held the opening speech. The meeting, […]

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Repopulating the Repo market

At the end of December 2016 the European Repo market experienced an unprecedented level of volatility and dislocation, raising worries over the stability of the whole European Money market. During the trading day of December 28th the repo-rate for specials of several ‘core’ government bonds (including Germany, France, Belgium, Netherland and Austria) tightened to record-low […]

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European Reflation: All that Glitters ain’ t Gold

Annual inflation in the Eurozone has surged to its highest levels since 2013. Having already hit 1.1% in December 2017, it has now jumped to 1.8% in January 2017, according to Eurostat. Despite the consumer price growth acceleration, the European Central Bank insists that the aggressive monetary stimulus must continue. Draghi’ s attention is focused on […]

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