Bericht

The European Central Bank in the age of banking union

During the crisis the European Central Bank's roles have been greatly extended beyond its price stability mandate. In addition to the primary objective of price stability and the secondary objective of supporting EU economic policies, we identify ten new tasks related to monetary policy and financial stability. We argue that there are three main constraints on monetary policy: fiscal dominance, financial repercussions and regional divergences. By assessing the ECB's tasks in light of these constraints, we highlight a number of synergies between these tasks and the ECB's primary mandate of price stability. But we highlight major conflicts of interest related to the ECB's participation in financial assistance programmes. We also underline that the ECB's government bond purchasing programmes have introduced the concept of 'monetary policy under conditionality', which involves major dilemmas. A solution would be a major change towards a US-style system, in which state public debts are small, there are no federal bail-outs for states, the central bank does not purchase state debt and banks do not hold state debt. Such a change is unrealistic in the foreseeable future.

Sprache
Englisch

Erschienen in
Series: Bruegel Policy Contribution ; No. 2013/13

Klassifikation
Wirtschaft
Thema
Zentralbank
Geldpolitik
Eurozone

Ereignis
Geistige Schöpfung
(wer)
Darvas, Zsolt
Merler, Silvia
Ereignis
Veröffentlichung
(wer)
Bruegel
(wo)
Brussels
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Bericht

Beteiligte

  • Darvas, Zsolt
  • Merler, Silvia
  • Bruegel

Entstanden

  • 2013

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