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Title: Leaning against persistent financial cycles with occasional crises

This paper quantitatively investigates conditions under which a leaning against the wind (LAW)-type monetary policy is advisable to address risks to financial stability.

Favourable financial conditions, including sufficient access to loans for businesses and households, are crucial for the growth and maintenance of a healthy economy. However, cheap credit may lead to higher debt levels and drive up asset prices, creating vulnerabilities and potentially leading to rapid but unsustainable growth. The global financial crisis of mid-2007 to early-2009 is such an example.

ESM Managing Director Pierre Gramegna will deliver introductory remarks at the joint ICMA-ESM conference on the potential of wholesale central bank digital currencies for capital markets.

ESM Chief Financial Officer and Management Board Member Kalin Anev Janse will moderate a panel discussion with the participation of: 

On Japan's investment in the ESM:

We have seen on capital markets more interest from Asian investors in general, as interest rates are higher. That obviously means the yield is attracting investors for the ESM too.

Rolf Strauch, Chief Economist at ESM, at event with the MeetEU community.

They discussed the work of the ESM, its organisational set up as well as current tensions and challenges in the international financial sector.

Inflation boosts public revenue. How to spend it may become a delicate issue, especially when it is unexpected and driven by an energy crisis and a geopolitical conflict, as is currently the case by Russia’s war against Ukraine. There is more money in the public purse (almost) immediately, as collected revenues turn out to be higher than had been forecast. But governments have to assess how the improvement in the budget balance is best used in view of the macroeconomic environment.

(Please check against delivery)

Title: Global efforts to fight the consequences of climate change: the role of Regional Financing Arrangements

Croatia is the third country to join the initial 17 ESM Members, following Latvia in 2014 and Lithuania in 2015.