Europe | Getting Global Monetary Policy On Track | Hoover Institution

Friday, May 3, 2024
Hoover Institution | Stanford University
The Hoover Institution Economic Policy Working Group hosts “Getting Global Monetary Policy on Track," its annual monetary policy conference on Thursday, May 2, 2024 at Stanford University.
Klaus Masuch and Luis Garicano spoke of the fiscal foundations of the euro, structures put in place to avoid the temptation to print money to finance government debts, how those structures weakened through the series of crises, and how to reform the euro to reinstitute an insulation of monetary from fiscal policy.
Markus Brunnermeier discussed issues surrounding the introduction of digital central bank currencies, in particular the euro. Among other issues, he highlighted the tension between private systems, which like to print money but care less about resilience, and public systems that may be less efficient and more political .
Yuriy Gorodnichenko noted how inflation is declining in Europe, with no rise in unemployment. Looking forward, however he pointed to strained public finances, commodity shocks, war, and international decoupling that could hurt economic performance and bring inflation back.
Luigi Bocola also considered the fiscal limits on monetary policy in the euro. On how did inflation emerge, he showed asset market estimates that the Fed and ECB became much more dovish in 2020. Both central banks may be afraid to raise rates that would hurt banks and government finances.
“Getting Global Monetary Policy on Track" was the theme this year following up on last year’s theme “How to Get Back on Track," and the previous year’s theme “How Monetary Policy Got Behind the Curve.” A key goal of the conference is to examine how to get back and stay on track and, thereby, how to reduce the inflation rate without slowing down economic growth. This year the key policy issues are largely international, with special discussions of Europe and Asia. This is a policy-oriented conference consisting of formal presentations, policy panels, and in-depth discussions.
Luis Garicano, London School of Economics, and Klaus Masuch, Directorate General Economics of the European Central Bank (slides)
www.hoover.org/sites/default/...
Markus Brunnermeier, Princeton University (slides)
www.hoover.org/sites/default/...
Yuriy Gorodnichenko, University of California, Berkeley (slides)
www.hoover.org/sites/default/...
Luigi Bocola, Stanford University (slides)
www.hoover.org/sites/default/...
Chair: Michael Bordo, Rutgers University
For more information, visit www.hoover.org/events/getting....