Publications
Monetary Policy in Wartime Competitive Conditions
Abstract
The present work intends to briefly review and update the framework for monetary policy drawn up in our «On Monetary Financing» (‘Sobre o Financiamento Monetário’) in light of the interplay between recent theoretical contributions to Monetary Theory and European Integration and the current volatile political events, marked by increasing and indiscriminate state-sanctioned violence against civilians, attacks on energy infrastructure and blockades of critical chokepoints, which increasingly threaten to fracture the Post-World War Order and accelerate the decline of (physical) globalization, plunging supply chains with it.
April, 2026
Abstract
Drawing on legal governance principles, monetary-law foundations, inflation understood as the currency’s purchasing-power depreciation, and philosophical constraints of sovereignty under the rule of law, this study examines whether non-conventional monetary policies adopted within the European Monetary Union in the wake of successive financial and economic crises, as operationalized through Open Market Operations, have amounted, in practice, to inflationary monetary financing prohibited by the Treaties of the European Union, notably Article 123 TFEU. It contends that the extensive discretionary interpretation of central-bank mandates risks enabling hidden fiscal transfers and artificially price-inflationary demand for market instruments, inconsistent with the price stability mandate.
May, 2025