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Complexity, Uncertainty, and Monetary Policy: Can the ECB Avoid the Unconventional Becoming the 'New Normal'?

Hartwell, C. A., 2019. Complexity, Uncertainty, and Monetary Policy: Can the ECB Avoid the Unconventional Becoming the 'New Normal'? Economists' Voice, 16 (1), 20190021.

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DOI: 10.1515/ev-2019-0021

Abstract

© 2019 Walter de Gruyter GmbH, Berlin/Boston 2019. Worries about Italy and the unresolved issue of euro governance - coupled with uncertainty surrounding Brexit - means that the European Central Bank (ECB) may already be facing its next crisis in the euro area. Unfortunately, the ECB is still fighting the last war, deploying the tools of unconventional monetary policy to address lingering problems while unable institutionally to address needed structural change. This paper looks at the ECB as an institution amongst institutions and shows how even more unconventional approaches will not help to bolster the economy of the euro area. Indeed, given the complexity of money, the effects of expectations, and continued uncertainty, expanding the ECB's unconventional arsenal is likely to have deleterious consequences across Europe.

Item Type:Article
ISSN:1553-3832
Additional Information:Funding Source: European Parliament Award identifier / Grant number: IP/A/ECON/2018-18 European Parliament, funder id: http://dx.doi.org/10.13039/501100000784, Grant Number: IP/A/ECON/2018-18.
Uncontrolled Keywords:complexity; euro; European Central Bank; monetary policy
Group:Faculty of Management
ID Code:33145
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:16 Dec 2019 16:44
Last Modified:16 Dec 2019 16:44

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