ECB's Visco: A significant deterioration in the economic outlook is cause for concern

tweet at 11:17am: ECB'S SCHNABEL: FURTHER INCREASES IN OUR KEY POLICY RATES WILL BE NEEDED tweet at 11:18am: *ECB's Schnabel: Slower Growth May Not Materially Ease Price Pressure tweet at 11:18am: ECB's Schnabel: -Risks of a wage-price spiral could be limited if inflationary expectations remain stable. -Because there is uncertainty about the persistence of inflation, a firm control is required #ECB $EURSpeech by Isabel Schnabel at a panel on the “Fight against inflation” The euro area is facing a cost-of-living crisis. An increasing proportion of people’s income is being spent on essential purchases, such as food and energy. At the same time, price pressures are broadening and nominal wages are not keeping pace with rising prices. The result is a marked loss in people’s purchasing power and a decline in the labour share of income, which is the share of total income paid to workers as wages, salaries and other benefits. Today I want to make four conceptual points about these developments. First, I will argue that the secular decline in the bargaining power of workers can help explain the decline in the labour share of income, which can be expected to weigh on private consumption and thus dampen aggregate demand. Second, I will ask what factors determine the future evolution of real wages and hence how the costs of this crisis are distributed between workers and firms in the future. I will argue that the risks of a wage-price spiral are contained, provided inflation expectations remain anchored. Third, I will discuss why a decline in real wages and a slowdown in aggregate demand may not materially ease current inflationary pressures. One reason is that today’s energy crisis will suppress both supply and demand. A second reason is that firms will try to protect their profit margins from higher energy costs. My final point relates to the implications for monetary

Today, I would like to talk about the future of supervision and regulation of the largest banks, which changed significantly after the financial crisis 14 years ago and has ...

tweet at 11:26am: G7 FOREIGN MINISTERS IN JOINT STATEMENT: WE WILL NEVER RECOGNIZE THESE ALLEGED ANNEXATIONS BY RUSSIA, NOR THE BOGUS "REFERENDUMS" CONDUCTED AT GUNPOINT tweet at 11:27am: G7 FOREIGN MINISTERS IN JOINT STATEMENT: WE WILL IMPOSE FURTHER ECONOMIC COSTS ON RUSSIA G7 FOREIGN MINISTERS IN JOINT STATEMENT: NUCLEAR RHETORIC WILL NOT PREVENT OR DETER US FROM SUPPORTING UKRAINE FOR AS LONG AS NECESSARY https://t.co/GfgQrt9kQ5

tweet at 12:03pm: NATO'S STOLTENBERG: THIS IS MOST SERIOUS ESCALATION SINCE START OF WAR - Reuters via https://t.co/ymHY6x3NYD tweet at 12:02pm: NATO'S STOLTENBERG: LAND GRAB IS ILLEGAL NATO'S STOLTENBERG: NATO ALLIES DO NOT RECOGNISE ANY OF THIS TERRITORY PART OF RUSSIA NATO'S STOLTENBERG: THESE LANDS ARE UKRAINIANS NATO'S STOLTENBERG: SECOND TIME RUSSIA HAS TAKEN UKRAINIAN LAND BY FORCE tweet at 12:04pm: NATO'S STOLTENBERG: PUTIN HAS UTTERLY FAILED ITS STRATEGIC OBJECTIVES NATO'S STOLTENBERG: PUTIN'S MOVE IS ADMISSION WAR NOT GOING AS PLANNED