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Europe's new central bank is developing its version of accountability and public debate over monetary policies. It is natural for CEPR, as a network of policy-oriented academic economists, to contribute to the establishment of this new institution. Monitoring the European Central Bank (MECB) brings together a group of economists internationally known for their work on macroeconomics and monetary policy. MECB monitors the European economy and the work of the ECB, and offers analyses to the public, including the European Parliament and the media. A full MECB report is published each year, complemented by an update that draws on recent publications of the ECB. This is the fifth MECB report.