EMU-enlargement and the reshaping of decision-making within the ECB Governing Council: a voting-power analysis

Arbeitspapier

The monetary policy of the European Central Bank (ECB) is the subject matter of this paper. We analyze the prospects for future price stability in an enlarged European Monetary and Economic Union (EMU). At the heart of this study are the potential effects of altering decision-making procedure within the Governing Council of the ECB on price stability in the eurozone. The authors compare the impact of three alternative reform scenarios of the ECB Governing Council with the help of a voting-power analysis. It is presumed that a considerable loss of current EMU-members' influence power especially in favour of joining Central Eastern European Countries (CEECs) results in a loss of monetary credibility of the ECB: As transparency of the decision-making process within the ECB is lacking, markets may consider the ECB to be too much inclined to the economic performances of the CEECs. This has then a negative impact on the level of price stability in Europe. The voting-power analysis indicates which reform proposal is best with respect to a price-stability benchmark.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Ezoneplus Working Paper ; No. 23

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Positive Analysis of Policy Formulation and Implementation ; Central Banks and Their Policies
• Thema: power indices ; Banzhaf ; ECB ; monetary policy ; enlargement ; eurozone

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fahrholz, Christian ; Mohl, Philipp
• Ereignis: Veröffentlichung
• (wer): Free University Berlin, Jean Monnet Centre of Excellence
• (wo): Berlin
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/31940
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ