External authors

Nicola Viegi

Professor, School of Economics University of Pretoria

He is the South African Reserve Bank Professor of Monetary Economics - University of Pretoria, SA since 2010. He has served in various universities like University of Strathclyde as Research Fellow, University of Strathclyde as Lecturer in Economics, University of Kwazulu-Natal as Senior Lecturer in Economics and University of Cape Town as Associate Professor in Economics. He has been Visiting Lecturer in ESC Toulouse, Lecturer in Business Economics (1999-2002), University of Malta, Lecturer in International Finance (1999-2002) and De Nederlandesche Bank, Amsterdam (2000-present).

His research areas are Monetary economics, economic policy theory, monetary fiscal policy interdependence, political economy of monetary institutions, economic policy under uncertainty assets prices and monetary policy, regional integration in Africa, political economy of government debt, the economics of colonisation and decolonisation, macromodelling for emerging countries, economic growth and institutions.

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Policy Contribution

An analysis of central bank decision-making

An earlier version of this paper was presented at ‘The MPC at 25’, a conference organised by the United Kingdom’s National Institute of Economic and Social Research, in London, 30 March 2022 The process by which central banks take decisions has evolved over the years, with a tendency towards independence and decisions taken by committees […]

By: Maria Demertzis, Catarina Martins and Nicola Viegi Topic: Banking and capital markets Date: July 11, 2022
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Blog Post

European governance

Policy coordination failures in the euro area: not just an outcome, but by design

Discussions on the fiscal framework should aim to correct its procyclical nature with a view to promoting more cooperative outcomes.

By: Maria Demertzis and Nicola Viegi Topic: European governance, Macroeconomic policy Date: December 20, 2021
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Policy Contribution

Low interest rates in Europe and the US: one trend, two stories

Interest rates have been on a long-term decline, associated with declining productivity growth. To tackle this, the priorities are to reduce market concentration and, in Europe, change the financing model.

By: Maria Demertzis and Nicola Viegi Topic: Global economy and trade, Macroeconomic policy Date: March 10, 2021
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Opinion

The perils of more debt

Europe must find the “Ways and Means”.

By: Maria Demertzis, Nicola Viegi and Bruegel Topic: Macroeconomic policy Date: April 10, 2020
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Blog Post

Inflation targets: revising the European Central Bank’s monetary framework

The ECB is looking to evaluate whether its definition of price stability is effective in helping anchor inflation expectations. We argue that the current definition does not make for a very good focal point. To become a focal point the ECB needs to do two things. Price stability should be defined as inflation at 2 percent,. Remove therefore the unnecessary ambiguity of "below but close to 2 percent". But that is not enough. Around that 2 percent, the ECB should say which levels of inflation it is prepared to tolerate. There need to be explicit bands defined around that 2 percent to provide a framework for economic agents to evaluate Central Bank performance. And as the ECB will have to operate under high levels fo uncertainty these bands need to be wider than tolerance of inflation between 1 and 3 percent, which is what many inflation targeting Central Banks have tolerated over the years.

By: Maria Demertzis, Nicola Viegi and alihan Topic: Macroeconomic policy Date: February 20, 2020
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Opinion

Brexit: When in doubt, slow down

Uncertainty over Brexit remains high despite looming deadlines. Here, the authors argue that the UK should take the necessary steps to make time to build consensus around the final shape of Brexit, and that the UK population should be consulted.

By: Bruegel, Maria Demertzis and Nicola Viegi Topic: Macroeconomic policy Date: March 29, 2019
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Opinion

How a second referendum could be the best way to overcome Brexit impasse

A new vote based on the revocation (or not) of Article 50 would give the UK government a clear signal to proceed in one direction or another, and thus trim down the number of options being touted – most of which are unworkable as things stand.

By: Maria Demertzis and Nicola Viegi Topic: Macroeconomic policy Date: December 14, 2018
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Blog Post

Why a good Brexit outcome matters (and it’s not just the economy, stupid!)

Uncertainty still reigns over the future shape of the EU-UK relationship, as Brexit negotiations rumble on. Though the two parties are parting ways, a more cooperative approach from both would greatly improve the longer-term economic and political prospects for all concerned

By: Maria Demertzis and Nicola Viegi Topic: Macroeconomic policy Date: February 22, 2018
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Blog Post

Are central bank(er)s still credible?

Both the Fed and the ECB have managed to remain credible since the financial crisis, but their credibility levels have evolved differently. Since inflation in the US and the euro area has been similar in the past 8 years, the difference in the way that credibility has evolved is the result of the different macroeconomic policy mix applied.

By: Maria Demertzis, Nicola Viegi and Bruegel Topic: Macroeconomic policy Date: June 14, 2016