15 Jul 2022
Europe, Evaluation, Financial sector, Macroeconomics and macroeconomic policy, External Publications

War in Ukraine: implications for the ECB

The Ukraine shock comes at a most inconvenient time, when the inflation surge generated by the recovery from the pandemic requires urgent attention. The Eurosystem must proceed with policy normalisation, raising interest rates and shrinking its balance sheet, which can trigger financial instability. Defining and communicating its strategy is essential. This paper was provided by the Policy Departmentfor Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 20 June 2022.


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The paper was prepared within the framework service contract which is intended to support the work of ECON in the European Parliament by enabling it to seek independent expert advice in the field of monetary and economic affairs to support its scrutiny activity, in particular in the context of the Monetary Dialogues between ECON with the European Central Bank (ECB). Expertise is requested on a wide range of issues relevant to the work of ECON in relation to EU economic and monetary integration, including governance and institutional aspects, as appropriate.