Central Banking, Monetary Policy, and the European Central Bank
Coping with the Challenges
Edited by Emanuele Citera, Assistant Professor of Economics, Division of Social Studies, Bard College, USA, Lino Sau, Associate Professor of Political Economy, Department of Economics and Statistics “Cognetti de Martiis”, University of Turin and Domenica Tropeano, Associate Professor of Political Economy, Department of Economics and Law, University of Macerata, Italy
The Elgar Series on Central Banking and Monetary Policy
Publication Date: September 2025 ISBN: 978 1 03532 426 2 Extent: c 208 pp
Book’s page on the publisher website
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.
‘The ECB has long been criticized for institutionalizing supply-side macroeconomics, a limited perspective on inflation drivers, and a ‘fair weather’ view of the relationship between monetary union and fiscal policy. It now faces new challenges in the form of the climate crisis and potential disruptions to the payments system. Central Banking, Monetary Policy, and the European Central Bank addresses these issues in a series of thoughtful and constructive essays that, together, offer hope for a brighter future for Europe at a critical moment in its history.’
– Mark Setterfield, The New School For Social Research, USA
‘This is a highly useful and interesting collection of papers providing thought-provoking perspectives for anyone interested in monetary policy especially for the Eurozone and how central bankers’ actions at a time of financial innovation, price instability, financial crises and economic growth challenges do or —do not —work.’
– Dimitri B. Papadimitriou, Levy Economics Institute of Bard College, USA