S5 Ep52: Director's Cut: Priorities for the new ECB president

A difficult proposition faces the new ECB president – monetary
union remains incomplete, the bank lacks room to manoeuvre in
applying new tools, and it is not yet clear what constitutes the
new economic ‘normal’.

In this episode of 'The Sound of Economics' Bruegel director
Guntram Wolff addresses deputy director Maria Demertzis and
research fellow Grégory Claeys, who together with senior fellow
Francesco Papadia have written a memo to the incoming ECB
president.

In their note, the authors state that the ECB needs to begin this
eight-year term by reviewing monetary policy framework to account
for the increasingly uncertain environment in which it will have
to operate. In that vein, the incoming president will have to be
prepared to emulate previous actions, providing certainty when it
cannot be found elsewhere.

In addition, the authors propose methods by which the ECB can
bolster the euro-area architecture while continuing to fulfil its
role in promoting financial stability.

For further reading on this topic, we recommend a recent blog
post by Grégory Claeys and Tanja Linta on the evolution of the
ECB governing council's monetary-policy decision-making process.