Menu Content/Inhalt
August 2019
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

Search on Site

Events Print
previous year previous month next month next year
See by year See by month See by week See Today Search Jump to month
Athanasios Orphanides, MIT Print
Tuesday, 26 September 2017, 16:30 - 18:00

Joint with UCL, ULB, KULeuven and NBB 

Athanasios Orphanides, MIT Sloan School of Economics

The Fiscal-Monetary Policy Mix in the Euro Area: Challenges at the Zero Lower Bound

Abstract:  This paper explores the reasons for the suboptimal fiscal-monetary policy mix in the euro area in the aftermath of the global financial crisis and ways in which the status quo can be improved. A comparison of fiscal and monetary policies and of economic outcomes in the euro area and the United States suggests that both fiscal and monetary policy in the euro area have been overly tight. Fiscal policy has been hampered by the institutional framework which constrains individual states and lacks instruments to secure an appropriate aggregate stance. ECB monetary policy has been hampered by the distributional effects of balance sheet policies which needed to be adopted at the zero lower bound, and by discretionary decisions taken before the crisis such as the reliance on credit rating agencies for determining collateral eligibility for monetary operations. The compromising of the “safe asset” status of euro area sovereign debt during the crisis complicated fiscal and monetary policy. Changes in the discretionary decisions governing the implementation of monetary policy in the euro area can potentially reduce the distributional effects of policy and improve the fiscal-policy mix and longer-term prospects for the euro area.


Please reply by email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it if you wish to participate to this seminar or if you want to have an appointment with the speaker. In case you want to access the NBB Parking (rue Montagne aux Herbes potagères 41), please also provide us with your name and the license plate of your car. 

Location: NBB - Auditorium of the National Bank of Belgium (Room A2)
Contact: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it