The risk of a global recession has risen markedly, placing central banks back into the spotlight as economic and financial policy-makers with powerful tools at their disposal. OMFIF’s chief economist and director of research Danae Kyriakopoulou discusses the role of central banks in managing the next downturn with Pierre Blanchet, head of investment intelligence at Amundi, Patrick Honohan, former governor of the Central Bank of Ireland, and Barnabás Virág, executive director of the directorate for monetary policy and economic analysis at Magyar Nemzeti Bank.
They talk about the evolving role of central banks, and ‘new’ risks including climate change, cyber threats and digital currencies. They also address the fundamental challenge of maintaining credibility in the eyes of the public, and discuss the effect of leadership changes in the world’s major central banks on their ability to respond to the threat of recession.
Focusing on the euro area, they explore scenarios ahead for completing an ‘unfinished’ monetary project, including a debate on whether monetary union needs a fiscal union in order to succeed.