In this episode of The Sound of Economics, Rebecca Christie discusses central bank independence and credibility with Francesco Papadia and Lucrezia Reichlin, Bruegel fellows and former top officials at the European Central Bank. As the Federal Reserve comes under increasing political pressure in the U.S., understanding what central banks do and why they are needed is more important than ever. Traditional monetary policy, digital currency, financial supervision and climate-related initiatives all play a role in how central banks operate today.

Relevant research:

• Lucrezia Reichlin and Jeromin Zettelmeyer, The European Central Bank must adapt to an environment of inflation volatility, Bruegel Analysis, 12 June 2024
• The ECB’s Digital Euro and new operational framework: is there an overlap? Bruegel event, 2 June 2025
• Véron, N. (2024) ‘Europe’s banking union at ten: unfinished yet transformative’ Book, Bruegel
• Véron, N. (2025) ‘Breaking the deadlock: a single supervisor to unshackle Europe's capital markets union’, Bruegel blueprint series 35, Bruegel