Political Economy

The ECB and the Inflation Monsters: Strategic Framing and the Responsibility Imperative (1998-2023)

The recent resurgence of inflation in Europe has led the ECB to increase interest rates and phase out asset purchase programs designed to address the effects of the Great Financial Crisis. This article investigates how the ECB adjusts its logic of responsibility throughout this series of crises. Using a topic model and in-depth analysis of speeches, we examine the ECB's strategic framing of linkages related to inflation during three historical periods: the Central Bank Independence (CBI) era (1998-2011), the secular stagnation era (2011-2021), and the new inflation era (2021-). Our findings indicate that modifications made to the CBI's linkages during the secular stagnation era shaped the ECB's framing of the new inflation era in a novel way. However, despite acknowledging difficult policy tradeoffs, which they used to downplay in the past, ECB policymakers have continued to reframe its initial imperative of responsibility in the hope of avoiding policy discussions on regime change.

An Independent European Macroeconomics? A History of European Macroeconomics through the Lens of the European Economic Review

Economics in Europe has encountered a process of internationalisation since the 1970s. To a certain extent, this internationalisation is also an ‘Americanisation’ and many European departments and economics have adopted the standards of US economics, notably mathematical modelling, the use of econometrics, and the neoclassical theory as a modelling benchmark. Regarding this process, we can wonder if European economics has just been mimicking US economics since the 1970s, or if some European specialities have survived or emerged.