Jordi Schröder Bosch
@jordischroeder.bsky.social
PhD Candidate at FU Berlin, EQUALFIN doctoral program “Finance and Inequality in Times of Polycrisis”
Researcher at Positive Money EU.
IMFS | Central Banking | Political Economy
Researcher at Positive Money EU.
IMFS | Central Banking | Political Economy
Given the current bleak state of things, I appreciate @ember-energy.org for making me feel optimistic one report at a time
November 6, 2025 at 3:13 PM
Given the current bleak state of things, I appreciate @ember-energy.org for making me feel optimistic one report at a time
Line goes up!
ember-energy.org/latest-insig...
ember-energy.org/latest-insig...
November 6, 2025 at 3:07 PM
Line goes up!
ember-energy.org/latest-insig...
ember-energy.org/latest-insig...
in the past the ECB mostly relied on refinancing operations to provide liquidity, rather than on bond purchases as the Fed did. But I agree that separating the role of these potential interventions from the normalisation path is a way to potentially indefinitely postpone these other discussions.
November 6, 2025 at 2:09 PM
in the past the ECB mostly relied on refinancing operations to provide liquidity, rather than on bond purchases as the Fed did. But I agree that separating the role of these potential interventions from the normalisation path is a way to potentially indefinitely postpone these other discussions.
I would push back slightly on this. I suppose the distinction they are trying to make here concerns the purpose of these purchases (e.g. purchasing bonds to address fragmentation risks or when reaching the ZLB vs doing so to cover liquidity needs arising from autonomous factors). At the same time,+
November 6, 2025 at 2:09 PM
I would push back slightly on this. I suppose the distinction they are trying to make here concerns the purpose of these purchases (e.g. purchasing bonds to address fragmentation risks or when reaching the ZLB vs doing so to cover liquidity needs arising from autonomous factors). At the same time,+
If they are used, the path towards normalisation would be interrupted, and the ECB would not reach the "endpoint" of the new operational framework. What worries me is that, if that were to be the case, the implementation of green structural operations would keep being postponed.
November 6, 2025 at 1:32 PM
If they are used, the path towards normalisation would be interrupted, and the ECB would not reach the "endpoint" of the new operational framework. What worries me is that, if that were to be the case, the implementation of green structural operations would keep being postponed.
Yeah, all the discussion around the new operational framework assumes a normalisation path in which these interventions do not take place, while at the same time making clear they remain part of the ECB's policy toolkit and could still be used.
November 6, 2025 at 1:32 PM
Yeah, all the discussion around the new operational framework assumes a normalisation path in which these interventions do not take place, while at the same time making clear they remain part of the ECB's policy toolkit and could still be used.
Last year we wrote a report where we proposed an alternative framework with more policy space to enable the guiding principle of supporting the transition to a green economy, if that's of interest to anyone: positivemoney.org/eu/publicati...
A future-fit operational framework for the European Central Bank
Shifting power from big banks to people.
We collaborate with policymakers, the public and economists around the world so we can redesign our economic system for a better world and a healthy planet.
positivemoney.org
November 6, 2025 at 11:51 AM
Last year we wrote a report where we proposed an alternative framework with more policy space to enable the guiding principle of supporting the transition to a green economy, if that's of interest to anyone: positivemoney.org/eu/publicati...
I'm currently writing a report on the role of structural operations, and it is quite humbling to see how what takes me two paragraphs to explain clumsily, Schnabel manages to perfectly summarise in one sentence :|
November 6, 2025 at 11:51 AM
I'm currently writing a report on the role of structural operations, and it is quite humbling to see how what takes me two paragraphs to explain clumsily, Schnabel manages to perfectly summarise in one sentence :|
Finally, we have the first ECB “estimate” of future bank demand for excess reserves, ranging from €600 billion to €2.2 trillion, depending on banks’ HQLA holdings and LCR targets.
November 6, 2025 at 11:51 AM
Finally, we have the first ECB “estimate” of future bank demand for excess reserves, ranging from €600 billion to €2.2 trillion, depending on banks’ HQLA holdings and LCR targets.
Compared to other countries, excess reserves remain abundant in the euro area, with the spread of repo rates over policy rates currently slightly negative.
November 6, 2025 at 11:51 AM
Compared to other countries, excess reserves remain abundant in the euro area, with the spread of repo rates over policy rates currently slightly negative.
However, this increases duration risk in banks' balance sheets. An increase in government bond rates would have a significant impact on banks' LCRs. The role of reserves as HQLA is one of the main reasons why today’s normalisation does not entail a return to the pre-GFC framework.
November 6, 2025 at 11:51 AM
However, this increases duration risk in banks' balance sheets. An increase in government bond rates would have a significant impact on banks' LCRs. The role of reserves as HQLA is one of the main reasons why today’s normalisation does not entail a return to the pre-GFC framework.
As reserves have decreased, banks have absorbed the decline in HQLA assets by purchasing government bonds, keeping their LCRs relatively stable.
November 6, 2025 at 11:51 AM
As reserves have decreased, banks have absorbed the decline in HQLA assets by purchasing government bonds, keeping their LCRs relatively stable.
We still have no information on how exactly these structural monetary policy operations will be designed so as to support the transition to a green economy, which was one of the guiding principles of the new operational framework.
November 6, 2025 at 11:51 AM
We still have no information on how exactly these structural monetary policy operations will be designed so as to support the transition to a green economy, which was one of the guiding principles of the new operational framework.
In its structural portfolio of securities, the ECB will target shorter-dated assets for three reasons: (i) to avoid interfering with the monetary policy stance (ii) to maintain policy space (iii) to ensure financial soundness (i.e. to avoid the losses experienced in the past tightening cycle).
November 6, 2025 at 11:51 AM
In its structural portfolio of securities, the ECB will target shorter-dated assets for three reasons: (i) to avoid interfering with the monetary policy stance (ii) to maintain policy space (iii) to ensure financial soundness (i.e. to avoid the losses experienced in the past tightening cycle).
As for structural monetary policy operations, the ECB will first launch structural refinancing operations, followed later by a structural securities portfolio once legacy bond holdings have wound down sufficiently. Before implementation, MROs and 3m LTROs need to pick up considerably.
November 6, 2025 at 11:51 AM
As for structural monetary policy operations, the ECB will first launch structural refinancing operations, followed later by a structural securities portfolio once legacy bond holdings have wound down sufficiently. Before implementation, MROs and 3m LTROs need to pick up considerably.
While China's exports to the US have decreased, they have strongly increased for ASEAN countries.
(www.ecb.europa.eu//press/key/d...)
(www.ecb.europa.eu//press/key/d...)
November 6, 2025 at 9:03 AM
While China's exports to the US have decreased, they have strongly increased for ASEAN countries.
(www.ecb.europa.eu//press/key/d...)
(www.ecb.europa.eu//press/key/d...)
Reposted by Jordi Schröder Bosch
it's funny but it's extremely not good, man.
October 17, 2025 at 3:17 PM
it's funny but it's extremely not good, man.
But you're commenting on an EU figure, saying that these solar additions are not replacing fossil fuels, which they're actually doing, and where emissions are in fact going down, for what it's worth.
October 5, 2025 at 12:35 PM
But you're commenting on an EU figure, saying that these solar additions are not replacing fossil fuels, which they're actually doing, and where emissions are in fact going down, for what it's worth.
In 2024, there was a significant decline in gas and coal power generation. The electricity sector in the EU is becoming increasingly decarbonised, and the integration of batteries will hopefully accelerate this positive trend.
Source: ember-energy.org/latest-insig...
Source: ember-energy.org/latest-insig...
October 5, 2025 at 11:32 AM
In 2024, there was a significant decline in gas and coal power generation. The electricity sector in the EU is becoming increasingly decarbonised, and the integration of batteries will hopefully accelerate this positive trend.
Source: ember-energy.org/latest-insig...
Source: ember-energy.org/latest-insig...
But solar (and wind) are replacing fossil fuels. Coal power generation in the EU has been declining for more than a decade, and gas power generation has been decreasing over the last 5 years.
October 5, 2025 at 11:27 AM
But solar (and wind) are replacing fossil fuels. Coal power generation in the EU has been declining for more than a decade, and gas power generation has been decreasing over the last 5 years.