MNI BRIEF: MonPol May Work Faster In Shocks - ECB's Schnabel

Monetary policy appears to work faster and more forcefully than previous estimates implied once shocks are properly identified, European Central Bank executive board member Isabel Schnabel said on Monday.

In welcoming remarks to the WE_ARE_IN conference in Frankfurt, Schnabel said the ECB needs to constantly rethink its monetary toolkit as recent research has challenged conventional wisdom, citing more powerful interactions of fiscal and monetary policy than traditional models and less weight of household differences in aggregate demand.

“These insights inquire that we invest in granular data, sector specific analysis and framework that capture the full range of transmission channels to make our policy more effective,” she added.