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Online Debate on the Policies of the European Central Bank in COVID-19 Times

On 10 June, the European University Institute’s Florence School of Banking and Finance hosted Isabel Schnabel, Member of the European Central Bank’s Executive Board, in an online seminar on ‘ECB Policies in COVID-19 times’.

COVID-19 has had an unprecedented impact on the global economy. While the future developments of the situation are still unknown, it is clear that the shock will have profund and longlasting impacts on the world’s economic structures.

Focusing on Europe, Ms Schnabel discussed the risk of COVID-19 leaving a deep footprint on growth and inflation in the euro area, focusing in particular on the design and calibration of the policy response by the European Central Bank to address the consequence of the pandemic. In particular, Ms Schnabel argued why the pandemic emergency purchase programme (PEPP) remains the appropriate tool to address the current challenges of the crisis in the context of the price stability mandate of the European Central Bank.

The initial intervention was followed by a panel discussion with Jean-Pierre Mustier (CEO of Unicredit and President of the European Banking Federation) and Patrick Honohan (Honorary Professor at Trinity College Dublin and Non-Resident Senior Fellow at the Peterson Institute for International Economics; formerly Governor of the Central Bank of Ireland). In the panel discussion, moderated by Elena Carletti (Professor of Finance at Bocconi University and the Florence School of Banking and Finance) speakers assessed the medium-term economic impact of the pandemic, discussing in particular the current and future conditions of the financial sector, the possible optimal role of central banks, and the future of European integration.

Speech by Isabel Schnabel

Download the slides