The Governor of the Irish Central Bank, Gabriel Makhlouf, today pointed to the legacy of structural change left by Covid-19, noting two important and changing areas - globalisation and digitalisation which "will have implications for the way we live, work, consume and communicate and, therefore, the effective transmission of monetary policy across the euro area." 
 
Speaking today at a webinar hosted by Institute of International and European Affairs, Makhlouf highlighted other factors that impede the transmission of monetary policy such as "risk aversion across national lines, an incomplete banking union and the absence of fully integrated financial, capital and credit markets all of which have been thrown into sharp relief as a result of the pandemic."
  
Governor Makhlouf said that monetary policy makers need to understand the nature of any structural shifts underway in the economy (as well as to the prevailing macroeconomic and institutional framework) so that they continue to deliver on their mandate. Makhlouf said that these issues will form part of the ECB’s strategy review.
 
Source: www.businessworld.ie