The US Federal Reserve decided to keep its benchmark rate in a range between 1.0 and 1.25 per cent in September 2017. At the same time, the Fed announced that it will start shrinking its $4.5 trillion balance sheet in October. With the interest rate outlook remaining unchanged, another rate hike is likely to happen this year. Professor Friedrich Heinemann, head of the “Corporate Taxation and...
As expected, the European Central Bank (ECB) announced today that, once again, it would not be adjusting its base rates, nor would it be making any changes to its outlook on interest rate policy. The outlook on the bond purchase programme remains equally unchanged from July’s communiqué, as the ECB confirmed the programme’s continuation. Professor Friedrich Heinemann, head of the Research...
As expected, the European Central Bank (ECB) has announced to make no changes to its key interest rates and bond-buying programme. In its latest decision, the ECB has, however, taken into account the persistently high growth rates in the eurozone as well as the increased inflation rate. ECB President Mario Draghi expects the economic growth prospects in the eurozone to improve even further. Dr....
Despite increasing economic and political confidence in the eurozone, the European Central Bank (ECB) is still yet to reach the point of changing its outlook regarding its monetary policy and has continued to suggest that even lower ECB interest rates are on the cards. Professor Friedrich Heinemann, head of the "Corporate Taxation and Public Finance" Research Department at the Mannheim Centre for...
The European Central Bank (ECB) has decided to leave its key interest rates unchanged and to continue its bond-purchase programme as planned until the end of the year. Professor Friedrich Heinemann, head of the ZEW Research Department "Corporate Taxation and Public Finance" at the Centre for European Economic Research (ZEW), comments on the ECB's decision. - "The ECB does well to not adopt...
The European Central Bank (ECB) has decided to reduce the interest rate for the marginal lending facility to zero per cent, and that for the deposit facility from minus 0.3 to minus 0.4 per cent. In addition, the ECB has extended its asset purchasing programme, "Quantitative Easing", by a further 20 billion, thus providing a total of 80 billion euros, and determined a further liquidity programme...
Professor Fuest, President of the Centre for European Economic Research (ZEW), comments today's ECB decision: "The ECB was right to decide against an extension of monthly asset purchases. The effectiveness of extending this policy in providing stimulus is limited. Highly indebted households and firms will not invest and consume more if the ecb buys more assets and creditors are increasingly...
Switzerland's Economy is on a Roll – Experts Anticipate a Stable Growth TrendNo Inflation Pressure in SightStable Swiss Franc Against the EuroProspect of Monetary Policy Easing Lowers Interest-Rate Expectations for the EurozoneRise in Stock-Market ExpectationsSwiss Export Momentum Appraisal Buoyed by the Better Eurozone AssessmentSpecial Question: Medium-Term Forecasts
Last year, it was quite fashionable to compare the ECB’s monetary policy to the Mephistophelean discovery of endlessly reproducible paper money in Faust. But current public opinion in the eurozone would seem to reflect a different passage from Goethe's tragedy: "O moment, I would like to say: stay a while, you are so lovely!" Many European politicians have proclaimed that the crisis is over,...
Dr. Marcel Fratzscher addressed a controversial issue that is currently fuelling worldwide political debate at the ZEW Research Seminar: he discussed the results of a study on the global impact of the monetary policy measures by the American Central Bank Federal Reserve (Fed). - He examined the impact of the American Central Bank’s monetary policy on other countries in the period from 2008 to...