The ECB Podcast

This discussion dives into the impact of increased defense spending on green energy and digital infrastructure investments. Experts explore the implications of US tariff threats on the ECB and how they could shape Europe’s economic landscape. The conversation also addresses whether the ECB favors larger economies over smaller ones and the support for nations like Slovenia. Finally, the podcast investigates the dual nature of artificial intelligence, weighing its potential benefits against risks to the financial sector.

Tariffs and geopolitical conflicts have created uncertainty around the world. But how does the new trade environment affect inflation and the economy? How can central banks adapt? And what is the potential impact on the dominance of the US dollar ? In the third episode of our special Sintra series of the ECB Podcast, our host Paul Gordon talks to London School of Economics Professor Silvana Tenreyro. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 4 July 2025 and recorded on 1 July 2025. In this episode: 01:30 How is the world economy doing? What developments are having an impact on our economy today? And what uncertainties are arising from tariffs, trade fragmentation and armed conflicts in different parts of the world? 03:30 Tariffs, trade fragmentation and the economy How can trade tariffs and fragmentation affect economic growth and inflation in the euro area and beyond? 06:25 How are prices changing? How are prices changing in different countries? Will tariffs cause prices in the United States to rise, and those in Asia and Europe to fall? And why? 07:55 Lessons for central banks Given the extremely high level of uncertainty, what lessons from past shocks can central banks apply in the future? Why do we need clearly defined frameworks? And what role do governments play? 09:55 How can governments prepare for potential shocks? Investing in technologies that are difficult to substitute, diversifying energy sources and creating buffers for critical inputs – why it’s crucial that governments have a strategy to withstand various shocks. 12:05 What is a dominant currency? When is a currency considered internationally “dominant”? And what dominant currencies have there been in the past? 13:40 Dollar dominance and monetary policy transmission Does dollar dominance in international trade transactions reduce the effectiveness of monetary policy? 17:30 The future of dollar dominance How will the dominance of the US dollar develop in the future? Is its role as a primary reserve currency at risk due to the Trump Administration’s policies? 19:10 What keeps you up at night? What happens to our economy if there is a sudden shortage of a certain input? What impact will AI have if it remains largely unregulated? And what do stablecoins and digital currencies mean for our economy? 21:00 Our guest’s hot tip Silvana shares her hot tip with our listeners. Further readings: Michael McLeay and Silvana Tenreyro: Dollar dominance and the transmission of monetary policy https://personal.lse.ac.uk/tenreyro/dominant_currency.pdf Sintra Series episode 1/4: Price stability in times of change https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod250702_episode110.en.html Sintra Series episode 2/4: Adapting to change: Ensuring price stability in a new geopolitical era https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod250625_episode109.en.html Silvana’s hot tip I’m still here/Ainda estou aqui ECB Instagram https://www.instagram.com/europeancentralbank/

In this engaging discussion, Andrew Bailey, Governor of the Bank of England, and Chang-Yong Ri, Governor of the Bank of Korea, join Jay Powell, Chair of the Federal Reserve, and Kazuo Ueda, Governor of the Bank of Japan, to tackle pressing economic challenges. They delve into strategies for combating inflation while navigating geopolitical tensions and trade uncertainties. The conversation also touches on the implications of digital currencies, the importance of trust among central bankers, and the risks posed by AI on public perception, offering insights into future monetary policies.

In this engaging discussion, Philip R. Lane, the Chief Economist and Executive Board member at the ECB, explores the intricate relationship between geopolitical uncertainty and inflation. He delves into the ECB's recent interest rate adjustments and the need for a flexible, data-driven monetary policy. Lane emphasizes the importance of integrating risks into decision-making and discusses upcoming topics at the ECB Forum in Sintra. He also shares a valuable hot tip for navigating these challenging economic landscapes.

In this discussion, President Christine Lagarde outlines the latest monetary policy decisions aimed at targeting a 2% inflation rate. The conversation delves into the current economic performance and anticipated price developments. Key risks affecting the economic outlook are explored, alongside insights into the dynamics of financial and monetary conditions. It's an enlightening look at how policy changes are crafted to stabilize the euro area economy.

Join John Fell, the Deputy General Director for Macro Prudential Policy and Financial Stability at the ECB, as he dives into the chaotic world of global finance. He discusses the impacts of geopolitical uncertainty and US tariffs on Europe’s financial landscape. Discover how increased defense spending could offer unexpected economic benefits and innovation. John shares insights on navigating financial instability, emphasizing the importance of robust macroprudential policies, plus a hot tip that every aspiring economist should consider!

Today our Governing Council decided on monetary policy, determining what’s needed to return inflation to our 2% goal in a timely manner. Listen to President Christine Lagarde present today’s decisions. The statement also covers: • how the economy is performing • how we expect prices to develop • the risks to the economic outlook • the dynamics behind financial and monetary conditions Our monetary policy statement at a glance, 17 April 2025 https://www.ecb.europa.eu/press/press_conference/visual-mps/2025/html/mopo_statement_explained_april.en.html Christine Lagarde, Luis de Guindos: Monetary policy statement, 17 April 2025 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2025/html/ecb.is250417~091c625eb6.en.html Monetary policy decisions, 17 April 2025 https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.mp250417~42727d0735.en.html Combined monetary policy decisions and statement, 17 April 2025 https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/shared/pdf/ecb.ds250417~e613e58d41.en.pdf?95a8c391ee55936072302d86e709bf0e European Central Bank https://www.ecb.europa.eu/home/html/index.en.html You can also listen on all major podcast platforms. Published and recorded during our press conference on 17 April 2025 #MonetaryPolicy #EuropeanCentralBank #ChristineLagarde #Finance #FinancialConditions #Inflation #EconomicActivity #EconomicOutlook #PressConference #Banking #CentralBanking #Podcast #Economics #EU #Europe #ECB

António Dias da Silva, an ECB expert on AI adoption, and Miles Parker, an economist focused on AI and energy consumption, dive into the transformative impact of AI on the economy. They discuss whether AI will replace jobs or create new opportunities, emphasizing the necessity of reskilling. The duo explores demographic differences in AI adoption and how policy can facilitate corporate integration. They also tackle the increasing energy consumption of AI technologies, comparing their demands to traditional activities, and ponder the balance between digital innovation and sustainability.

We need financial literacy to make good financial decisions. But did you know that half of Europeans have low financial literacy levels, and that 60% of them are women? Our host Stefania Secola talks to Annamaria Lusardi from Stanford University about what financial literacy is, why it matters and how we can improve it, especially among women. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 13 March 2025 and recorded on 7 March 2025. In this episode: 00:01 Commitments made by central banks How did central bank Governors commit to improving financial literacy in their respective countries? What are the desired outcomes? 00:27 Looking at the numbers How financially literate are Europeans? How big is the gap between men and women? And what can we do about it? 01:55 Financial literacy defined What is financial literacy? How does it relate to financial independence? 03:58 Measuring financial literacy There are three simple questions, known as the “Big Three”, that experts use to measure financial literacy. Can you, our listener, answer them? 05:59 Why central banks care about financial literacy Why does financial literacy matter for central banks? How does it relate to the effectiveness of monetary policy and trust in what a central bank does? And how does it affect banking supervision? 10:53 Financial knowledge in Europe Why is financial literacy in Europe so low? What can we do to increase the overall level of financial literacy among Europeans? 12:30 When to start addressing financial literacy When is the best time to improve people’s financial literacy? Is it limited to schools or are there also other teachable moments? 15:50 The gender gap in financial literacy Why is there this gender gap and why is it a problem? What can we do to make sure that half the population isn’t left behind? 20:14 The role of fintech Does fintech complement financial literacy? What risks do gender differences in digital literacy pose when it comes to using fintech? 22:26 The road ahead Central banks made five commitments to improve financial literacy. What are these commitments? 24:50 Financial literacy question: answer revealed We answer the first “Big Three” question. Listen and see whether you chose the correct answer! 25:45 Our guest’s hot tip Annamaria shares her hot tip with our listeners. Further reading: Annamaria Lusardi’s research https://www.annamarialusardi.com/research/ ECB International Women’s Day Event 2025 https://www.ecb.europa.eu/press/conferences/html/20250307_intl_womens_day.en.html The ECB Blog: The gender gap at work is closing – but slowly https://www.ecb.europa.eu/press/blog/date/2025/html/ecb.blog20250307~85fd774bd3.en.html The “Big Three” and “Big Five” https://gflec.org/education/questions-that-indicate-financial-literacy/ Chart: Gender gap in financial literacy is pervasive, incl. the young, well educated and high income https://www.youtube.com/watch?v=ZvVzgcXCFBw&t=222s ECB Instagram https://www.instagram.com/europeancentralbank/ European Central Bank www.ecb.europa.eu ECB Banking Supervision https://www.bankingsupervision.europa.eu/home/html/index.en.html

Christine Lagarde, President of the European Central Bank and a key figure in global monetary policy, discusses crucial updates on the ECB's recent decisions. She highlights the strategy to curb inflation and achieve the 2% target. The conversation dives into the current economic performance and the anticipated developments in prices. Lagarde also addresses the risks facing the economic outlook and shares insights into maintaining stability in the euro area amidst high inflation and challenging lending conditions.