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dc.contributor.authorSCHELKLE, Waltraud
dc.date.accessioned2024-02-05T08:33:18Z
dc.date.available2024-02-05T08:33:18Z
dc.date.issued2023
dc.identifier.citationStato e mercato, 2023, Vol. 43, No. 1, pp. 29-52en
dc.identifier.isbn9788815386021
dc.identifier.issn0392-9701
dc.identifier.issn2612-0976
dc.identifier.urihttps://hdl.handle.net/1814/76445
dc.descriptionPublished: April 2023en
dc.description.abstractEver since the financial crisis of 2008, central banks in the rich Western hemisphere are engaged in extraordinary interventions to stabilise financial markets. They act as lenders and money market makers of last resort. But these interventions were also motivated by the need to stabilise public finances. This became obvious in the Euro Area (EA) when the Greek government was effectively shut out of bond markets in early 2010 and the panic rapidly spread to the Irish and Portuguese segments. The turmoil in bond markets has been widely interpreted as a symptom of the EA’s incompleteness as a fiscal union. But monetary re-insurance is not the same as fiscal dominance. Yet incentives for governments are sometimes more aligned with bond-holding banks and this can put central banks under a regime of financial dominance. By analyzing speeches of Executive Board members, the article shows how the ECB has come to develop monetary re-insurance of fiscal states and the financial system, while safeguarding against becoming dominated by other institutional actors. The need for monetary re-insurance of fiscal states is not confined to EA members. To illustrate this point, the article compares recent financial instability in the UK with Italy and shows how central banks navigate this dilemma of re-insurance and financial dominance.en
dc.description.sponsorshipThis research was supported by the European Research Council under the Synergy Grant number ERC_SYG_2018 Grant no. 810356, in the scope of the project SOLID – Policy Crisis and Crisis Politics. Sovereignty, Solidarity and Identity in the EU post 2008.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.publisherIl Mulinoen
dc.relationinfo:eu-repo/grantAgreement/EC/H2020/810356/EUen
dc.relation.ispartofStato e mercatoen
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.titleMonetary re-insurance of fiscal states in Europeen
dc.typeArticleen
dc.identifier.doi10.1425/107673
dc.identifier.volume43en
dc.identifier.startpage29en
dc.identifier.endpage52en
dc.identifier.issue1en
dc.rights.licenseAttribution-NonCommercial-NoDerivatives 4.0 International*


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Attribution-NonCommercial-NoDerivatives 4.0 International
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 International