29 June 2022

The 2022 ECB Forum on Central Banking “Challenges for monetary policy in a rapidly changing world”

At the 2022 Forum we considered the challenges facing the euro area economy. Higher inflation, notably as a result of rising energy prices, pandemic-related supply shortages and the release of pent-up demand, has created a difficult and uncertain environment for central banks around the globe.

 And Russia’s invasion of Ukraine has complicated the economic outlook even further, particularly for Europe. We looked at the implications of all this for the euro area economy in the global context, including trends that seem to have been reinforced by the pandemic, and at how they may affect monetary policy in the future.

More specifically, on the subject of euro area inflation and its causes, we discussed the role of international production networks and key factors in the behaviour of energy prices, including geopolitical developments and changes in supply structures. As for monetary policymaking, we exchanged views on the impact of inflation expectations and real estate booms. Our programme also included sessions on new technologies, enabling us to look at how digital technologies and the potential for increased globalisation of services could affect European labour markets, as well as to discuss again central bank digital currencies in the current global environment and the features of a potential digital euro....

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