The Dimensions of Responsibility: Perspectives on the ECB’s Monetary Policy Mandate
In-Depth Analysis
15-05-2020
A strong theoretical and empirical case exists for a dual monetary policy mandate. Central banks should aim to stabilise both prices (or inflation) and output (or employment). Other objectives, such as financial stability, reversing climate change, and reducing inequality are at best secondary objectives for which better policy tools are available. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs.
In-Depth Analysis
External author
Joseph E. GAGNON, Jacob F. KIRKEGAARD, David W. WILCOX, Christopher G. COLLINS
About this document
Publication type
Keyword
- climate change
- deterioration of the environment
- economic conditions
- economic policy
- ECONOMICS
- employment
- EMPLOYMENT AND WORKING CONDITIONS
- ENVIRONMENT
- EU institutions and European civil service
- European Central Bank
- EUROPEAN UNION
- FINANCE
- financial stability
- free movement of capital
- full employment
- inflation
- labour market
- labour market
- monetary economics
- monetary policy
- powers of the institutions (EU)
- price stability
- prices
- sustainable development