Online seminar – Lessons for Central Banking from the Euro Area Crisis
The latest online seminar by the Florence School of Banking, entitled ‘Lessons for Central Banking from the Euro Area Crisis’, focused on the role and actions of the European Central Bank in managing the euro area crisis, pointing out to the key learnings that could shape the future of central banking.
The main presentation was delivered by Patrick Honohan, who headed the Central Bank of Ireland in the midst of the crisis, having served as Governor from September 2009 to November 2015. He is currently a honorary Professor of economics at Trinity College Dublin and a nonresident senior fellow at the Peterson Institute for International Economics, Washington, DC. Drawing on his newly released monograph Currency, Credit and Crisis: Central Banking in Ireland and Europe (Cambridge University Press, May 2019), he discussed the ECB crisis management, pointing to some analytical flaws and missed opportunities both at the level of monetary policy, and, beyond that, in regard to national bank resolution and fiscal adjustment. In particular, he analysed the case of crisis management in Ireland, comparing it with the actions undertaken in Iceland.
The presentation was followed by a discussion with George Papaconstantinou, former Finance Minister and Minister of Environment and Energy of Greece and currently part-time Professor at the European University Institute’s School of Transnational Governance, who commented on the evolution of the ECB’s role during the crisis, looking back at the possible changes that could have occurred if the Irish bailout would have happened before that of Greece. Finally, Maria Ana Barata, 4th year PhD Researcher at the European University Institute’s Department of Law, highlighted the legal underpinnings of the decisions that can bring to a bail-in or a bail-out and commented on the case of financial assistance during the crisis in Portugal.