OeNB conference: Governor Kocher highlights strengths of common monetary policy

OeNB | SUERF Economics Conference on “Monetary policy trade-offs in a heterogeneous currency area” opened today

Diverging economic developments in the euro area are a challenge for monetary policy. However, this heterogeneity is no exception but reality in any monetary union, Martin Kocher, Governor of the Oesterreichische Nationalbank (OeNB), pointed out at the opening of the OeNB’s Economics Conference, held in cooperation with SUERF – The European Money and Finance Forum, in Vienna on Thursday. In his welcome remarks, Kocher explained the challenges in more detail, emphasising that monetary policymakers in the euro area have the right toolkit to ensure price stability even under varying economic conditions.

Structural differences can be one reason why decisions taken to meet an area-wide inflation target may temporarily turn out to be not always optimal for all member countries or sectors. But policymakers are accustomed to carefully managing these trade-offs. Kocher also argued that we should not judge the euro area by comparing it to a flawless, perfectly uniform currency union. The real question is how it compares to the alternative: a Europe fragmented across different currencies and monetary policies.

However, an aspect worth considering is the uneven transmission of monetary policy across euro area countries, Kocher continued. Variations in the implications of policy measures may cause the effects of the common monetary policy to be perceived differently across countries or sectors. This also makes the communication of monetary policy decisions more demanding, Kocher noted. That said, the euro area is well prepared to act as appropriate: Apart from dedicated crisis tools that can be deployed anytime, if need be, better data and research have been providing a clearer picture of why policies affect countries or sectors differently. This helps policymakers to better explain the causes and consequences of uneven transmission, contributing to a better understanding and, therefore, the effectiveness of monetary policy decisions, Kocher concluded.

Event features fireside chat with IMF head Kristalina Georgieva followed by academic and practitioner sessions

The OeNB Governor’s remarks marked the opening of the conference held under the theme “Monetary policy trade-offs in a heterogeneous currency area”. The speech was followed by a fireside chat with IMF Managing Director Kristalina Georgieva, one of the many high-level experts from institutions and academia attending the event. Over the two conference days, participants are exploring the challenges decision-makers face in heterogeneous currency areas, examining how economic, financial and monetary policy can contribute to better outcomes, and discussing the latest research findings.

The 53rd Economics Conference is taking place as a hybrid event at the OeNB’s headquarters at Otto Wagner Platz 3 in Vienna on 18 and 19 June 2026.

The OeNB’s Economics Conference has a long-standing tradition of bringing together renowned experts in economics and central banking. In recent years, Austria’s central bank – the Oesterreichische Nationalbank (OeNB) – has organised the annual Economics Conference in cooperation with SUERF.

SUERF – The European Money and Finance Forum – is an independent, non-profit network association of central banks, supervisors, financial institutions, academic institutions and financial sector practitioners.