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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Jul 11

Thank you, Louis!

Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 23

What a success! Congratulations to everybody involved, and especially to my colleagues at @econtribute.bsky.social! You are indeed excellent! @dfg.de

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

I don't think there is a contradiction. In 2022 we had to react strongly to avoid inflation expectations becoming entrenched. In such a situation, central banks have to respond even if this leads to a deep contraction (as the Phillips curve is flat).

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

Thanks for listening in [in German]! 8/8 podcasts.apple.com/de/podcast/w...

Wird der Euro die neue Leitwährung, Frau Schnabel?

Podcast-Folge · Table Today · 17.05.2025 · 25 Min.

podcasts.apple.com

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

In recent years, we have learned that we cannot “look through” supply-side shocks if they are persistent and threaten to de-anchor inflation expectations. When the inflation regime changes, we must be ready to respond swiftly. #MonetaryPolicyStrategy 7/8

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

The easing of the German debt brake and the infrastructure package can help overcome the structural crisis and strengthen defence capabilities. Funds need to be spent wisely to foster growth. This should be accompanied by comprehensive structural reforms. 6/8

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

#CapitalMarketsUnion should focus on risk capital, which is crucial for driving innovation. We need to address the entire value chain: from the start-up phase through the growth phase, all the way to the exit stage within European capital markets. 5/8

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

A new European growth narrative is emerging, and there is momentum to embark on reforms. One promising way to foster integration is the #28thRegime, which would allow firms, e.g. start-ups, to operate all over the EU under similar conditions. 4/8

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

After April 2, the euro area became a safe haven, leading to an appreciation of the euro, which signalled increased confidence. We are facing a historical opportunity to foster the international role of the euro. 3/8

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

Disinflation is on track, but new shocks are posing new challenges. Tariffs may be disinflationary in the short run but pose upside risks over the medium term. Therefore, we should keep a #SteadyHand, as I argued in a recent speech. #Hoover 2/8 www.ecb.europa.eu/press/key/da...

Keeping a steady hand in an unsteady world

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purch...

www.ecb.europa.eu

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 20

It was a pleasure to join @mickbroecker.bsky.social & his colleagues in the #TableToday podcast. We covered a lot of ground: monetary policy and inflation, the impact of tariffs, the emergence of a new European growth narrative, and fiscal challenges, with the following key messages. 1/8

Table.Briefings @table.media · May 17

Kann Europa der Gewinner des Handelskriegs werden?

Im Gespräch mit @mickbroecker.bsky.social spricht #EZB-Direktoriumsmitglied @isabelschnabel.bsky.social von einem „neuen europäischen Wachstumsnarrativ“.

Wie sie das deutsche Sondervermögen bewertet, hören Sie hier 👉 buff.ly/NwQAo9A

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 2

Please note that this blog is a follow-up to a previous blog published in February 2024 titled “The dynamics of PEPP reinvestments”, which explains in more detail how we implemented PEPP reinvestment: www.ecb.europa.eu/press/blog/d... 6/6

The dynamics of PEPP reinvestments

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purch...

www.ecb.europa.eu

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 2

PEPP implementation proceeded smoothly over the entire period. Flexibility was used only rarely, and deviations from the Eurosystem capital key swiftly receded. Looking ahead, the PEPP portfolio will continue to decline at a measured and predictable pace. 5/6

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 2

As regards the use of flexibility, the vast majority of purchases were conducted in line with the capital key. Besides technical factors, deviations occurred at the start of the PEPP in 2020 and in the summer of 2022, responding to risks to the transmission of monetary policy (red circles). 4/6

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 2

The new data give more insights into the implementation during the reinvestment phase. It shows how the Eurosystem balanced its market presence, taking seasonal patterns of redemptions and issuance into account. 3/6

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 2

In January 2025, the Eurosystem further increased the programme’s transparency by offering additional backward and forward-looking data. This includes historical monthly data for purchases since the start of the programme and forward-looking redemption data: www.ecb.europa.eu/mopo/impleme... 2/6

Pandemic Emergency Purchase Programme

Introduction to the temporary pandemic emergency purchase programme (PEPP) to counter the serious risks posed by the coronavirus.

www.ecb.europa.eu

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · May 2

In a recent #ECBblog post, jointly with our Heads of Market Operations, Imène Rahmouni-Rousseau, we take stock of the implementation of the pandemic emergency purchase programme (PEPP) after we ended reinvestment at the end of 2024. 1/6

European Central Bank @ecb.europa.eu · Apr 29

In 2024, reinvestments under the pandemic emergency purchase programme came to an end. In a new blog post, Imène Rahmouni-Rousseau and @isabelschnabel.bsky.social revisit the programme’s implementation in the light of newly published data.

Read #TheECBBlog www.ecb.europa.eu/press/blog/d...

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

P.S.: As always, the full speech and slides are on the ECB's website.
A special thanks to @andrespicer.bsky.social, @vassoioannidou.bsky.social and Bayes Business School as whole for welcoming me so warmly!

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

Summing up, financial literacy tends to strengthen the transmission of central bank policies to the real economy. This can support policy effectiveness, enhance public trust in central banks and help people make better financial decisions. 22/22

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

Financial literacy is also a cornerstone of the #SavingsAndInvestmentUnion. Under its 1st pillar, it aims to encourage citizens to invest in capital markets, which can contribute to financing part of the investment needed for the green and digital transitions. 21/22 eur-lex.europa.eu/legal-conten...

eur-lex.europa.eu

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

On International Women’s Day, the Eurosystem committed to five joint actions, also aimed at closing the gender gap in financial literacy. Such efforts can only complement, not replace, much broader efforts needed from governments and the education system. 20/22 www.ecb.europa.eu/ecb-and-you/...

Financial literacy in Europe

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purch...

www.ecb.europa.eu

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

At the ECB, we are taking active steps to foster financial literacy by expanding our communication efforts towards the general public. One example is our “Espresso Economics” channel on YouTube. 19/22 www.youtube.com/channel/UCRY...

Espresso Economics

Enjoy a wake-up shot of economics every week ☕ Dive with us into the world of choices 🤔 Big and small, they shape our everyday lives… Join us as we unravel how economics helps us understand the art...

www.youtube.com

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

In the most recent inflationary episode, the share of households with high financial literacy that trusted the ECB to maintain price stability rose notably as interest rates rose and inflation came down, while less financially literate households lost confidence. 18/22

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

When people better understand monetary policy, they trust central banks more, which helps anchor inflation expectations. Financially literate households are more knowledgeable about the ECB and more likely to know the correct definition of inflation, affecting the ECB’s credibility. 17/22

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Isabel Schnabel 🇪🇺🇺🇦 @isabelschnabel.bsky.social · Mar 30

To reach audiences beyond experts, the statement has been complemented by highly accessible, visualised statements, available in all EU languages. 16/22 www.ecb.europa.eu/press/press_...

Monetary Policy

Information on everything related to the ECB's monetary policy: objective, strategy, instruments and much more.

www.ecb.europa.eu

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