Anna Sophie Elektra Zech
GEM-DIAMOND doctoral fellow
ESR 2 – The capitalism-democracy nexus and struggles over European governance
Fascinated by economic policy discourses in member states and EU contexts, I am curious to research the nature of discourse on the European Central Bank.
Watching the Watchers
On the Expert Networks Translating Central Bank Communication
Supervisors
- Antoine Vauchez
- Amandine Crespy
Research abstract
Given the importance of inflation expectations in monetary policy, its success fundamentally depends on a central bank’s communicative efforts to legitimise policy action and shore up trust in its political and economic credibility. Instead of listening to the central bank, most market participants as well as the general public, however, listen to a group of translators, the so-called ECB Watchers, who spell out the implications of the ECB’s policy measures to its diverse audiences. While there is a substantial amount of research on central bank communication (cf Blinder et al,2001/2008/2022), the literature’s focus on ECB-owned output fails to adequately reflect the fact that close to 60% of its Eurozone audience learns about the ECB and its policies through indirect sources only (Assenmacher et al, 2021:55). Initial research on the interaction between the ECB and the media (e.g. Ferrara & Angino, 2022; Koop & Scotto di Vettimo, 2023) focuses on broad measures of quantitative text analysis such as the extent of coverage and sentiment analysis, but does not speak to actors’ backgrounds, networks or their sensemaking function about which we know little (Ibrocevic PhD Thesis 2024; Mudge & Vauchez, 2012/2016; Schmidt-Wellenburg, 2017). It therefore remains unclear how and to what end these translators engage with the ECB’s discourse, and vice versa.
This is an important oversight as the so-called “ECB Watchers” constitute a knowledge community that can credibly contest or support the ECB’s epistemic authority in and beyond financial markets. In doing so, they equally affect the efficacy of its monetary policy by furthering market understanding and influencing expectation formation and therefore the transmission of monetary policy and the ECB’s legitimacy vis-à-vis a broader public, holding the ECB accountable. This function is particularly crucial in a eurozone marked by crises that have seen the ECB pick up the political slack and integrating through the monetary backdoor (Schelkle, 2012). Researching these actors can then facilitate an improved understanding of the ECB’s interaction with its publics, moving beyond a top-down approach that is focused on ECB output. It can elucidate how the need for a unified monetary policy discourse on the one and diverse (national) audiences, on the other hand, is negotiated in practice.
Empirically, the project, therefore, proposes to study the so-called ECB Watchers, a diverse group of financial market and media actors as well as academics, in their role as translators between the ECB and its audiences as they “play an important role in interpreting central bank actions, disseminating and deciphering for the broad public the information released by central banks” and in “provid[ing] alternative opinions, lessening the monopolistic power of central banks” (Blinder et al, 2001:26). Following an initial investigation of the ECB’s approach to these translators via interviews and document analysis, the project characterises them by way of interviews and a social network analysis on a number of conferences they participate in. The project thus provides a novel dataset and highlights actors’ practices as well as the interconnectedness of this communicative sphere in which insider-outsider distinctions blur. In a final step, the project mobilises Leifeld’s (2012) discourse network analyser to investigate epistemic contestation over macroeconomic policy in the post-COVID inflationary period focusing on June 2022, one month before the ECB’s first rate hike
(transitory debate), and May 2024 (last mile debate), the month before the ECB's first rate cut. These dynamics will be observed in specialised and general newspapers at the European level and in the two countries most polarised on monetary policy, Germany and Italy.
Overall the project speaks to a broader research agenda on the sensemaking processes that link international institutions and international organisations to national public spheres, influencing their reputation and effectiveness. Understanding these processes is particularly crucial in our current age of technocratic ruling by emergency that is legitimised in the discursive construction of crises.
Personal Research Bibliography (So Far)
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Best, J. 2022. Uncomfortable knowledge in central banking: Economic expertise confronts the visibility dilemma, Economy and Society, pp.1 25.
Blinder, A., Ehrmann, M., Fratzscher, M., De Haan, J. & Jansen, D.-J. 2008. Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence, Journal of Economic Literature , 46 (4), pp.910 945.
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Bressanelli, E., Koop, C. and Reh, C. 2020. EU Actors under Pressure: Politicisation and Depoliticisation as Strategic Responses, Journal of European Public Policy, 27, 329–341.
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Coombs, N. 2022. Narrating imagined crises: How central bank storytelling exerts infrastructural power, Economy and Society, pp. 1 24.
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Do Vale, A., 2021. Central bank independence, a not-so-new idea in the history of economic thought: a doctrine in the 1920s. The European Journal of the History of Economic Thought, 28(5),pp.811-843.
Elgie, R. 2002. The politics of the European Central Bank: principal-agent theory and the democratic deficit, Journal of European Public Policy, 9 (2), 186-200.
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Eyal, G., 2013. Spaces between fields. Bourdieu and historical analysis, pp.158-182.
Ferrara, F.M. and Angino, S., 2022. Does clarity make central banks more engaging? Lessons from ECB communications. European Journal of Political Economy, 74.
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Kauppi, N. and Madsen, M.R. 2014. Fields of Global Governance: How Transnational Power ElitesCan Make Global Governance Intelligible, International Political Sociology, 8(3), pp. 324–330.
Koop, C. and Scotto di Vettimo, M. 2022. How do the media scrutinise central banking? Evidence from the Bank of England, European Journal of Political Economy, p. 102296.
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Moschella, M., Pinto, L. & Diodati, N. 2020. Let's speak more? How the ECB responds to public contestation, Journal of European Public Policy, 27 (3), 400-418.
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Mudge, S. L., & Vauchez, A. 2016. Fielding supranationalism: The European Central Bank as a field effect. Sociological Review, 64(suppl.), pp.146 169.
Mudge, S. & Vauchez, A. 2018. Too embedded to fail: The ECB and the necessity of calculating Europe. Historische Sozialforschung , 43 (3), pp.248 273.
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Personal Methods-Specific Bibliography (So Far)
Granovetter, M.S., 1973. The strength of weak ties. American journal of sociology, 78(6), pp.1360-1380.
Knoke, D. 1993. Networks of Elite Structure and Decision Making. Sociological Methods & Research,22(1), 23–45.
Leifeld, P., 2016. Discourse Network Analysis: Policy Debates as Dynamic Networks. In J. N. Victor, M. N. Lubell, & A. H. Montgomery, eds. Oxford Handbook of Policy Networks. Oxford: Oxford University Press.
Anna holds an MA (Hons) in Business/Management and Italian from the University of Glasgow, a Graduate Diploma in International Relations from the University of London, an MA in European Affairs with a specialisation in Economics and Public Policy from Sciences Po Paris and an MSc in Political Economy of Europe from the London School of Economics and Political Science.
Zech, Anna Sophie. 2024. “Playing With Fire? Conceptualising the ECB's Interaction With its Watchers”, presented at the Third Doctoral Conference on the Social and Political Constitution of the Economy, Max Planck Institute for the Study of Societies, Cologne, 29 February 2024.
Zech, Anna Sophie. 2023. “Watching the Watchers - On the Expert Networks Translating the European Central Bank's Communication”, presented at the Summer School for Women in Political Economy, Max Planck Institute for the Study of Societies, Cologne, 14 September 2023.
Memberships
SASE/Society for the Advancement of Socio-Economics 2024-2025
CES/Council for European Studies 2024-2025
ABSP/Association belge francophone de science politique 2024-2025
Training
ECPR Winter School on Social Network Analysis, February 2024
ECPR Summer School on Quantitative Text Analysis, August 2023
BIP Science Communication, March-June 2023
Teaching
TD (Travaux Dirigés) Political Science in English, First Year Bachelor in Political Science, Université Paris 1 Panthéon-Sorbonne, Spring Semester 2023
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BIP, BIP, Hooray – An EU Acronym Worth Getting Familiar With
14 August 2024
A concise guide on hybrid, Erasmus-funded academic courses and how they differ from the classic Erasmus semester abroad.
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What Can We Learn from Inflation to FutureproofOurUnion?
25 March 2024
An op-ed published by Anna Zech for the 60th anniversary of the IEE-ULB
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From Student to Teacher
30 July 2023
Becoming a scholar is just as much about producing research as it is about sharing it, not least with students.
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The GEM-DIAMOND’s First Policy AGORA Forum and Citizen Innovation Lab
21 February 2023
A Primer on Policy Work, Local Activism and the Role of Academia in Engaging Dissensus
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Birth of the GEM-DIAMOND Fellowship of the Ph.D.
1 October 2022
16 MSCA Fellows successfully selected following a gruelling selection process.