The ECB Podcast

How will the coronavirus vaccine affect economic recovery in 2021? Where do we stand after nine months of fighting the crisis? And what is the role of the ECB’s monetary policy? Our host Michael Steen discusses these questions with our Chief Economist Philip R. Lane. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 18 December 2020 and recorded on 11 December 2020. In this episode: 00:23 – What is the assessment of the economic response to the first wave? What the experience was during the first wave, how policy makers have adapted to the new challenges, how monetary and fiscal policy worked hand in hand to mitigate the economic shortfall. 05:53 – How is the ECB building a bridge towards economic recovery? Why the ECB recalibrated its monetary policy in December, what the economic forecasts say about the recovery, how the PEPP and TLTROs work to support economic recovery. 14:08 – What are the challenges that lie ahead in 2021? What the basis for our economic projections is, what difficulties and hopes there are on the path to economic recovery. 19:58 – What else is on the ECB’s agenda? What the strategy review is about, what exactly we’re looking at and how we’re listening to Europeans and gathering their input. Further reading: Overview: The ECB’s response to the coronavirus pandemic https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html Press release: ECB prolongs support via targeted lending operations for banks that lend to the real economy https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr201210_1~e8e95af01c.en.html Speech by Philip R. Lane: Monetary policy in a pandemic: ensuring favourable financing conditions https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp201126~c5c1036327.en.html Macroeconomic projections https://www.ecb.europa.eu/pub/projections/html/index.en.html European Central Bank www.ecb.europa.eu You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more: pod.link/ecbpodcast15:

What do cycling and financial stability have in common? How has the pandemic affected the financial system and the economy? What risks lie ahead? Our host Michael Steen discusses these questions and more with economists John Fell and Tamarah Shakir, who analyse financial stability at the ECB. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 25 November 2020 and recorded on 13 November 2020. In this episode: 00:46 – What is financial stability? What financial stability is, what it has in common with cycling, financial instability during the global financial crisis. 05:59 – How has the pandemic affected financial stability? How the coronavirus crisis affected financial stability in March, how the reaction by EU and national policymakers prevented a financial crisis and why financial stability could largely be preserved. 12:05 – How has the coronavirus crisis affected businesses? What the measures taken to protect businesses and households are, how the measures have worked and helped to preserve financial stability. 17:26 – What are the challenges that lie ahead? What the risks for businesses, households and the financial system are, what we need to look out for in the future and what is being done to prevent the risks from materialising. Further reading: Financial Stability Review, November 2020 https://www.ecb.europa.eu/pub/financial-stability/fsr/html/ecb.fsr202011~b7be9ae1f1.en.html Special Feature by John Fell and Garry Schinasi in the Financial Stability Review, June 2005, pp. 117-125 https://www.ecb.europa.eu/pub/pdf/fsr/financialstabilityreview200506en.pdf European Central Bank www.ecb.europa.eu You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more: https://pod.link/ecbpodcast

What is a digital euro? What would its benefits be and how would it affect the way we make payments? When could it be ready? Our host Michael Steen discusses these questions and more with Ulrich Bindseil, who is responsible for market infrastructures and payments at the ECB. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 6 November 2020 and recorded on 26 October 2020. In this episode: 01:10 – What is money? What money is, what the differences between central bank money and commercial bank money are, and where a digital euro comes in. 05:23 – The development of digital payments and the benefits of a digital euro. How digital payments have developed over the last few years, what different kinds of digital payments already exist and how they differ, and what the benefits of a digital euro might be. 12:12 – The impact on digital payments and design options How I will be able to pay in the future? What could a digital euro technically look like. 18:17 – The way forward and next steps When a digital euro will be ready and how and why to have your say on its design. Further reading: Report on a digital euro https://www.ecb.europa.eu/pub/pdf/other/Report_on_a_digital_euro~4d7268b458.en.pdf Public consultation on a digital euro https://epsilon.escb.eu/limesurvey3/434111?lang=en Tiered CBDC and the financial system https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2351~c8c18bbd60.en.pdf European Central Bank www.ecb.europa.eu/home/html/index.en.html

How is AI changing what we do? What does a job in the platform economy look like? How will the coronavirus pandemic affect the way we work? Our host Michael Steen discusses these questions and more with economists Robert Anderton and Lara Vivian. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 29 September 2020 and recorded on 13 August 2020. In this episode: 01:04 – Digitalisation and job polarisation How digitalisation is changing our roles and how job polarisation is affecting different euro area countries. 04:47 – Zooming in on artificial intelligence What the impact of AI is on jobs, what it means for the future of the job market and how AI is affecting different sectors. 06:57 – The platform economy What the characteristics of the platform economy are, how it has increased in size over the past years and possible policy implications. 14:25 – Labour markets after coronavirus- the new normal? How the pandemic could result in a permanent acceleration and take-up of digitalisation. Why this can pose challenges and provide new opportunities. Further reading: Virtually everywhere? Digitalisation and the euro area and EU economies https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op244~2acc4f0b4e.en.pdf Digitalisation and its impact on the economy: insights from a survey of large companies https://www.ecb.europa.eu/pub/economic-bulletin/focus/2018/html/ecb.ebbox201807_04.en.html Study to monitor the economic development of the collaborative economy at sector level in the 28 EU Member States https://op.europa.eu/en/publication-detail/-/publication/0cc9aab6-7501-11e8-9483-01aa75ed71a1 New evidence on platform workers in Europe https://ec.europa.eu/jrc/en/publication/eur-scientific-and-technical-research-reports/new-evidence-platform-workers-europe Hours of work polarisation? https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2324~3a8fca82b4.en.pdf European Central Bank https://www.ecb.europa.eu/home/html/index.en.html

How does the increased use of digital technologies change the way we work? Is the fear of automation taking away our jobs justified? Or do our tasks and skills evolve to meet the new conditions? Our host Michael Steen discusses these questions and more with economists Valerie Jarvis and Robert Anderton in this episode. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 2 September 2020 and recorded on 13 August 2020. In this episode: 01:11 – Digitalisation: what it is and its presence across the euro area How to measure digitalisation, how it affects our economies and what explains the differences in digitalisation levels across euro area countries. 05:24 – Digitalisation and labour markets What is the impact of digital technologies on labour markets, how robots are affecting the way we work and the important role of institutions and governance in reaping the benefits of digitalisation. 09:27 – Digitalisation and employment growth Why machines are not replacing humans and how the digital revolution can bring about large improvements in productivity and living standards. 12:40 – Zooming in on digital jobs How the proportions of digitally dependent employment differ across Europe, why the role of each country’s characteristics is important and why countries with higher digital employment growth are also those with lower unemployment. Further reading: Virtually everywhere? Digitalisation and the euro area and EU economies https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op244~2acc4f0b4e.en.pdf Digitalisation and its impact on the economy: insights from a survey of large companies https://www.ecb.europa.eu/pub/economic-bulletin/focus/2018/html/ecb.ebbox201807_04.en.html European Central Bank https://www.ecb.europa.eu/home/html/index.en.html

What challenges does the coronavirus pandemic pose for banks? And what role can they play in helping the real economy deal with the crisis? Our host Michael Steen discusses these questions and more with ECB Supervisory Board Chair Andrea Enria in this episode. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 10 June 2020 and recorded on 29 May 2020. In this episode: (02:38) Coronavirus and the banks How the pandemic is posing challenges for banks, their response to the crisis and what banks can do to support the economy by lending to people and businesses. (07:42) The ECB’s measures to boost lending How the ECB has supported bank lending in the euro area. (11:25) The advantages of supervision at European level How European supervision enabled banks to enter this crisis in a much stronger position than in 2008, and how it has allowed for a unified and fast response to increase the safety of banks. (14:57) The coronavirus and digitalisation in the banking sector The opportunities for banks that come with digitalisation and how to mitigate the new risks increased digitalisation introduces. Further reading: The ECB’s response to the coronavirus pandemic https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html Supervision.Explained.: Why do banks need to hold capital? https://www.bankingsupervision.europa.eu/about/ssmexplained/html/hold_capital.en.html Press release: ECB Banking Supervision provides temporary relief from capital requirements for market risk https://www.bankingsupervision.europa.eu/press/pr/date/2020/html/ssm.pr200416~ecf270bca8.en.html Press release: ECB asks banks not to pay dividends until at least October 2020 https://www.bankingsupervision.europa.eu/press/pr/date/2020/html/ssm.pr200327~d4d8f81a53.en.html Banking supervision website http://www.bankingsupervision.europa.eu/

What is the role of financial markets in the economy? How does the coronavirus pandemic affect markets? Is the current crisis also a financial crisis? Our host Michael Steen discusses these questions with ECB Executive Board member Isabel Schnabel. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 25 May 2020 and recorded on 15 May 2020. In this episode: (01:57) The role of financial markets in the economy How they act as intermediaries between savers and borrowers, how they react in case of a shock and why their stability is key to ensuring a well-functioning economy. (05:14) The coronavirus and financial markets How financial markets have responded to the coronavirus shock and why this is different from the 2008 financial crisis. (10:26) The ECB’s measures to ease lending How our targeted lending measures aim to help people and businesses, the particular role of the Pandemic Emergency Purchase Programme and how the ECB works with other central banks to keep financial systems working smoothly. (17:03) International cooperation in times of crisis: swap lines How swap lines between central banks work and how these agreements help keep financial systems around the world working smoothly. Further reading: The ECB’s response to the coronavirus pandemic https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html Explainer: Tell me more: What are currency swap lines? https://www.ecb.europa.eu/explainers/tell-me-more/html/currency_swap_lines.en.html European Central Bank website www.ecb.europa.eu

How is the coronavirus pandemic affecting the economy? Which sectors have been hit hardest? What is the ECB doing to limit the economic impact of the crisis? Our host Michael Steen discusses these questions with ECB Chief Economist Philip R. Lane. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 18 May 2020; recorded on 11 May 2020. In this episode: (02:30) Coronavirus and the economy The economic impact of the coronavirus pandemic, the characteristics of the shock on the supply and demand sides and which sectors have been hit the hardest by the crisis. (08:11) Coronavirus and the policy response The need to address the dramatic downturn in the economy that is threatening price stability, how we are supporting households and firms and why fiscal policy has to play a central role. (15:18) The risk of falling prices and targeted lending How the pandemic pushes prices down in the short and medium-term and how our targeted measures incentivise banks to continue lending to small and medium-sized businesses and households in these uncertain times. The ECB’s response to the coronavirus pandemic https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html Philip R. Lane: Interview with the Telegraaf https://www.ecb.europa.eu/press/inter/date/2020/html/ecb.in200512~13fcf73079.en.html Philip R. Lane: The monetary policy response to the pandemic emergency https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200501~a2d8f514a0.en.html ECB announces new pandemic emergency longer-term refinancing operations https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200430_1~477f400e39.en.html ECB recalibrates targeted lending operations to further support real economy https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200430~fa46f38486.en.html Luis de Guindos, Isabel Schnabel: Improving funding conditions for the real economy during the COVID-19 crisis: the ECB’s collateral easing measures https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200422~244d933f86.en.html Fabio Panetta: Why we all need a joint European fiscal response https://www.ecb.europa.eu/press/inter/date/2020/html/ecb.in200421~a7f2ec5159.en.html Christine Lagarde: How the ECB is helping firms and households https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200409~3aa2815720.en.html Luis de Guindos, Isabel Schnabel: The ECB’s commercial paper purchases: A targeted response to the economic disturbances caused by COVID-19 https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200403~54ecc5988b.en.html Christine Lagarde: Our response to the coronavirus emergency https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200319~11f421e25e.en.html ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP) https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200318_1~3949d6f266.en.html ECB statement https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200318~152e1c740f.en.html Philip R. Lane: The Monetary Policy Package: An Analytical Framework https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200313~9e783ea567.en.html ECB announces easing of conditions for targeted longer-term refinancing operations (TLTRO III) https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200312_1~39db50b717.en.html ECB announces measures to support bank liquidity conditions and money market activity https://www.ecb.europa.eu/press/pr/date/2020/html/ecb.pr200312_2~06c32dabd1.en.html European Central Bank website https://www.ecb.europa.eu/

How does climate change affect financial stability? Why isn’t the ECB buying more green bonds? How can banks better prepare for climate-related risks? Our host Michael Steen discusses these questions with expert guests Fatima Pires, Madelaine Roos and Patrick Amis. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 3 March 2020; recorded on 5, 6 and 13 February 2020. In this episode: (02:08) Climate change and financial stability The risks emerging from climate change (physical and transition risks), their effects on financial stability, how stress tests help spot these risks and why international cooperation is key. (13:22) Climate change and the green market Why we don’t just buy more green bonds, how a taxonomy can help identify green assets and what the ECB is doing to make its own funds more sustainable. (20:47) Climate change and banks The role of banks in the shift to a more sustainable economy, how supervisors can help banks prepare for risks stemming from climate change and why transparency is important to better understand climate risks. Climate change and the ECB https://www.ecb.europa.eu/ecb/orga/climate/html/index.en.html Speech (27 February 2020): C Lagarde, President of the ECB: Climate change and the financial sector https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200227_1~5eac0ce39a.en.html Research Bulletin: Finance and decarbonisation: why equity markets do it better https://www.ecb.europa.eu/pub/economic-research/resbull/2019/html/ecb.rb191127~79fa1d3b70.en.html Working Paper: Finance and carbon emissions \https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2318~44719344e8.en.pdf Financial Stability Review: Climate change and financial stability https://www.ecb.europa.eu/pub/financial-stability/fsr/special/html/ecb.fsrart201905_1~47cf778cc1.en.html Working Paper: The Green Golden Rule: habit and anticipation of future consumption https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2247~72dc51ddd8.en.pdf Economic Bulletin: Purchases of green bonds under the Eurosystem’s asset purchase programme https://www.ecb.europa.eu/pub/economic-bulletin/focus/2018/html/ecb.ebbox201807_01.en.html Working Paper: The impact of disasters on inflation https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1982.en.pdf Speech (2018): B Cœuré, Member of the Executive Board of the ECB: Monetary policy and climate change https://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp181108.en.html ECB Press Conference Q&A (23 January 2020) https://www.ecb.europa.eu/press/pressconf/2020/html/ecb.is200123~0bc778277b.en.html European Central Bank website https://www.ecb.europa.eu/home/html/index.en.html

Why do we need banking supervision at the European level? Should a bank be allowed to fail? What does a normal day look like for a supervisor? What are the supervisory challenges posed by Brexit? Our host Michael Steen discusses these questions with expert guests Andrea Enria, Pien van Erp Taalman Kip and Linette Field. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 21 January 2020 and recorded on 6 December 2019. In this episode: (01:03) A safe and sound banking sector Why do we need banking supervision at the European level, why should banks be allowed to fail and why is transparency towards private investors a priority in a bail-in world? (12:13) A day in the life of a supervisor What does a banking supervisor do, what are Joint Supervisory Teams and why can’t supervisors be of the same nationality as the bank they supervise? (20:43) Challenges for banks: profitability, cybersecurity and Brexit Why is it important that supervisors understand the risks banks face, why do they care about banks’ profits and what are the challenges posed by Brexit? Further reading: Explainer: SSM explained in 3 minutes https://www.youtube.com/watch?v=xC_2N0Y20qQ Webpage: Relocating to the euro area https://www.bankingsupervision.europa.eu/banking/relocating/html/index.en.html Supervision Newsletter: Brexit: operational risk increases when banks delay action https://www.bankingsupervision.europa.eu/press/publications/newsletter/2019/html/ssm.nl191113_2.en.html Supervision Newsletter: Brexit: stepping up preparations https://www.bankingsupervision.europa.eu/press/publications/newsletter/2019/html/ssm.nl190814.en.html Speech: A Enria, Chair of the ECB’s Supervisory Board: Supervising banks – Principles and priorities https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190307~28d206eae5.en.html Speech: A Enria, Chair of the ECB’s Supervisory Board: The banking union – a personal view on its past, present and future https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp191030~a66780e0a5.en.html Speech: A Enria, Chair of the ECB’s Supervisory Board: Is less more? Profitability and consolidation in the European banking sector https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190704~1f442782ac.en.pdf?2773aa57fc4093122a0effc8247b6a8b Speech: A Enria, Chair of the ECB’s Supervisory Board: A binary future? How digitalisation might change banking https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190311~2af7fb032e.en.html https://www.ecb.europa.eu/