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Odd Lots

Former ECB Chief Economist Peter Praet on What's Next For Central Banks

Odd Lots

Bloomberg

Business, News, News Commentary, Investing, Business News

4.52K Ratings

🗓️ 3 December 2020

⏱️ 66 minutes

🧾️ Download transcript

Summary

With developed economies still operating well below pre-crisis levels, central banks face substantial pressure to pursue stimulative policies on an ongoing basis. But what more can they do with the tools at hand? And how much do political fights get in the way? On the latest Odd Lots, we speak with Peter Praet, the former Chief Economist at the ECB, who served under Mario Draghi for almost a decade, about the lessons learned during that experience, and how they apply going forward.

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Transcript

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0:00.0

Together we have the opportunity to build a more sustainable and inclusive future.

0:06.0

At the Bloomberg New Economy Forum, we help make this possibility a reality

0:11.0

by cultivating new connections among global leaders that transcend geographies, industries

0:16.3

and ideologies.

0:18.4

Because when global leaders work together, the outcomes benefit all of us.

0:23.0

Learn more at Bloomberg New Economy.com. Hello and welcome to another episode of the Odd Lots Podcast, I'm Tracy Allaway.

0:45.0

So, Tracy Allaway.

0:48.0

So Tracy, we talk a lot about monetary policy on the podcast. We talk a lot about

0:54.3

central banking, what the future of central banking looks like in the post-crisis

0:59.8

era, but for all we talk about it, it's like probably keep, we never talk about it enough. There's always more to discuss.

1:06.0

Well, I feel like this is one of the big themes of 2020, right? So we've had this economic crisis and we've seen various responses to it from

1:15.1

Central Banks and we've seen various government responses to it as well and now we're

1:19.7

sort of waiting to see what the combination of those two things actually looks like and how monetary policy interacts with fiscal policy.

1:28.3

I feel like that's the thing we're all watching, right?

1:32.3

Yeah, I think that's fair to say.

1:34.4

And I think, you know, and again, this is sort of for people who've

1:37.4

listened to several episodes.

1:39.8

It's at this point is a retread, but I always think it's important that a lot of these

1:43.9

debates were happening already going into this crisis about the sort of

1:47.8

limit to monetary policy even in recent years whether Central Bankers needed new tools, whether there needs to be a greater

1:56.1

emphasis on fiscal policy and so forth to accelerate growth.

2:00.1

These were already big debates that were happening pre-crisis and like many other things, this crisis has really accelerated them.

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