1.

Digital euro – a solution in search of a problem?

Few economists ask why digital central bank money (“digital euro”) is needed. What are the problems a digital euro should solve? Are the arguments put forward by ECB officials convincing?

2.

The comeback of money supply M3

In contrast to the Bundesbank era money supply M3 no longer plays a major role at the ECB. However, during Corona M3 helped to explain the huge increase of inflation. Please explain this phenomenon and analyze the performance of M3 in past periods of high inflation. Why did the relationship between M3 and inflation faltered in the low inflation periods prior to Corona? What does all this mean for monetary policy?

3.

Profit Inflation – a real problem?

Traditionally, economists focus on labour costs as a dominant driver of inflation. However, during corona higher profits were identified as another source of inflation. What is profit inflation? How can it be calculated for Germany? How should the ECB react to it?

4.

How relevant are consumers‘ inflation expectations?

Consumers‘ inflation expectations do not have a good reputation among economists as they are perceived as backward looking. However, Professor Ricardo Reis shows that a rising skewness of the distribution of inflation expectations has been a good leading indicator of inflation. Please describe und critically assess this approach.

5.

The ECB’s operational framework – back to normal?

The ECB is currently revising its operational framework which determines the size of banks’ excess liquidity, how many government bonds are on the ECB balance sheet etc. Please analyze the operational framework in the years prior to the Great Financial Crisis and how the crisis changed the system. What are the options to return to a more market driven system?

6.

Hayek’s business cycle theory

The Great Financial Crisis led economists to revisit Hayek’s business cycle theory. Please describe the theory using Roger Garrison’s approach. Does it help to understand the Great Financial crisis?

7.

The implications of price controls

The current high inflation rates caused some economists to rethink price controls. Please describe President Nixon’s price controls and their implications.