Central Banking, Monetary Policy, and the European Central Bank

This book sheds light on the incoming challenges facing the European Central Bank (ECB) through a post-Keynesian lens. With contributions from expert global scholars and practitioners, it provides novel perspectives on the monetary and financial theory underlying the conduct of the ECB. Divided into three main parts, chapters cover the theoretical foundations of central banking theory, the threats of climate change and its impact on monetary policy, and the roles of public banks and the interbank market. They critically analyze the ECB's focus on price stability as well as its inflation-targeting regime, before considering whether its independence and mandate should be reviewed in light of current climate realities. The book draws on quantitative data to examine the interactions between carbon emissions, output, and green and brown systems, and concludes by evaluating the possibility of reforming the TARGET2 system to convert the ECB into an international settlement institution. Presenting cutting-edge insights and innovative solutions to the imminent challenges confronting the ECB, this book is an essential resource for students and scholars of economics, political economy, and money and banking. Its investigation of current and future policy issues will also greatly benefit practitioners and policymakers in these fields.