Contesting the monetary policies of the European Central Bank

2021 ◽  
pp. 90-108
Author(s):  
Marijn van der Sluis
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Monetary Policies ◽  
European Central

scholarly journals ECB independence and accountability today: Towards a (necessary) redefinition?

2019 ◽  
Vol 26 (1) ◽  
pp. 3-16
Author(s):  
Diane Fromage ◽  
Paul Dermine ◽  
Phedon Nicolaides ◽  
Klaus Tuori
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
European Central Bank ◽  
Banking Union ◽  
Special Issue ◽  
Monetary Policies ◽  
European Central ◽  
Introductory Article ◽  
Recent Developments ◽  
Economic And Financial Crisis

This introductory article sets the ground for the analysis performed in the articles included in this Special Issue. It shows why a new analysis of the European Central Bank (ECB)’s accountability is required by referring to recent developments, and by underlining how much the ECB’s role and standing have changed since its creation 20 years ago. Indeed, its resorting to unconventional monetary policies in response to the recent economic and financial crisis, as well as the creation of the Banking Union, have significantly affected the ECB. This introduction also recalls the main elements of the debate on the balance between accountability and independence, and shows how this balance has evolved. On the basis of the findings of the articles included in this Special Issue, some conclusions and hypotheses as to the way forward are formulated.

scholarly journals The Politicisation of the European Central Bank and the Bundestag

2019 ◽  
Vol 7 (3) ◽  
pp. 291-302 ◽  
Author(s):  
Anna-Lena Högenauer
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Right Wing ◽  
Eurozone Crisis ◽  
National Parliaments ◽  
Monetary Policies ◽  
European Central ◽  
The Media ◽  
The Subject ◽  
German Bundestag

The European Central Bank (ECB) became one of the key actors during the Eurozone crisis. However, its prominent role was not without controversy. On one hand, the Eurozone was stabilised, no member state defaulted, and no state had to leave the Euro. On the other hand, the ECB had to stretch its mandate, expand its policy remit, and adopt so-called ‘unconventional’ monetary policies. These attempts to depoliticise political challenges through a technocratic approach reduced the opportunities for democratic contestation, but they also bred frustration that led to politicisation. This article studies to what extent this politicisation affected the perception of the ECB in national parliaments. For this purpose, it studies the extent to which ECB policy has become politicised in the German Bundestag through an analysis of plenary debates from 2005 to 2018. The Bundestag represents an unlikely case for politicisation despite wide-spread criticism of the ECB in the media, as Germany was traditionally attached to creating a highly independent ECB, until recently had no major Eurosceptic right-wing parties, and parliamentary scrutiny of the national central bank is low. However, by studying the salience of ECB policies, the polarisation of opinion in the parliament, as well as the range of actors participating in the debates, this article finds that the ECB’s policies have become politicised and the subject of scrutiny and dissatisfaction.

scholarly journals UNCONVENTIONAL MONETARY POLICIES AND COMMUNICATION STRATEGIES OF THE EUROPEAN CENTRAL BANK

Il Politico ◽  
2020 ◽  
Vol 252 (1) ◽  
pp. 67-88
Author(s):  
Allegra Canepa
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Communication Strategies ◽  
Monetary Policies ◽  
European Central

Il lavoro ripercorre ed analizza il ruolo della Banca Centrale Europea e gli interventi adottati durante la crisi finanziaria soffermandosi sul contenuto, la fisionomia ed in modo specifico sulle modalità di comunicazione delle diverse misure adottate. Come risulta dall’analisi, la BCE ha fatto ricorso a misure di politiche monetaria non convenzionali per l’efficacia delle quali gli aspetti comunicativi sono risultati molto importanti. In questo senso le politiche di comunicazione relative alle misure non convenzionali adottate risultano interessanti ed attuali da esaminare perché mostrano come esse siano diventate non solo una modalità di incremento di trasparenza ma un supporto fondamentale per l’efficacia della politica monetaria.

scholarly journals How have the European central bank’s monetary policies been affecting financial markets in CEE-3 countries?

2020 ◽  
Author(s):  
Wojciech Grabowski ◽  
Ewa Stawasz-Grabowska
Keyword(s):  
Central Bank ◽  
Financial Markets ◽  
Sovereign Debt ◽  
European Central Bank ◽  
Spillover Effects ◽  
Monetary Policies ◽  
The Czech Republic ◽  
Sovereign Bond ◽  
European Central ◽  
Daily Data

AbstractThis paper aims to contribute to the growing pool of literature on the spillover effects of the European Central Bank’s (un)conventional monetary policies on the exchange rate, sovereign bond and equity markets of the Czech Republic, Hungary and Poland (CEE-3 countries), which are collectively known as the CEE-3 countries. The study is conducted using daily data from January 2010 to September 2019. Our results indicate that the financial markets of the CEE-3 countries have been strongly influenced by the nonstandard measures enacted by the European Central Bank, particularly those involving purchases of euro-area sovereign debt. The strongest spillover effects were identified for the Securities Markets Program, while the effects from the Outright Monetary Transactions program turned out to be the most durable. At the same time, the financial markets of the CEE-3 countries were found to have been largely unaffected by interest rate changes enacted by the European Central Bank.

scholarly journals Unconventional Monetary Policies: Lessons from the Past and the Present to Future Monetary Policy Frameworks

2020 ◽  
Vol 6 (1) ◽  
pp. 73-99
Author(s):  
Cristiano Boaventura Duarte ◽  
André Modenesi ◽  
Antonio Licha ◽  
Emmanuel Carré
Keyword(s):  
Monetary Policy ◽  
Adverse Effects ◽  
Central Bank ◽  
European Central Bank ◽  
Central Banks ◽  
Evolutionary Perspective ◽  
Monetary Policies ◽  
European Central ◽  
The Past ◽  
Policy Frameworks

This article intends to debate important aspects related to past and recent experiences of monetary policy accommodation, focusing on unconventional monetary policies. We intend to draw lessons from these experiences to discuss the design of future monetary policy frameworks.First, by reporting several historical experiences of major central banks, we highlight that policies which after 2008 crisis were considered “unconventional” were not new, with central banks intervening to avoid broader deterioration of macro-financial conditions.Moreover, analyzing the experience of the European Central Bank after 2008, we observe this institution has adapted its measures according to its former programs and to other central banks' experiences, to face numerous challenges and enhance its framework. Finally, we argue that central banks need to take advantage of past and recent experiences to improve the design of their future monetary policy frameworks under an evolutionary perspective. Based on this, measures previously implemented would have three possible destinations in new frameworks: i) Be discarded, due to their predominantly adverse effects; ii) Not be regularly implemented, but be kept as backstop mechanisms if needed; iii) Be incorporated as regular measures of monetary policy frameworks.

scholarly journals The democratic deficit and European Central Bank crisis monetary policies

2019 ◽  
Vol 26 (1) ◽  
pp. 81-93 ◽  
Author(s):  
Anna-Lena Högenauer ◽  
David Howarth
Keyword(s):  
Central Bank ◽  
Sovereign Debt ◽  
European Central Bank ◽  
Policy Making ◽  
Debt Crisis ◽  
Democratic Legitimacy ◽  
Sovereign Debt Crisis ◽  
Monetary Policies ◽  
European Central ◽  
International Financial Crisis

This article presents the argument that European Central Bank (ECB) policy-making from the start of the sovereign debt crisis in 2010 undermined the democratic legitimacy of the ECB. We start with the argument – defended by a number of scholars including Majone and Moravcsik – that where European Union (EU) policy-making is technocratic and does not have significant redistributive implications it can benefit from depoliticization that does not undermine the democratic legitimacy of this policy-making. This is notably the case where EU institutions have narrow mandates and are constrained by super-majoritarian decision-making. Prior to the international financial crisis, the ECB’s monetary policies were shaped entirely by the interpretation that its mandate was primarily to ensure low inflation. From the outbreak of the sovereign debt crisis, the ECB adopted a range of policies which pushed its role well beyond that interpretation and engaged in a form of redistribution that directly undermined treaty provisions.

scholarly journals 20 YEARS OF EUROPEAN MONETARY POLICY. FROM DOCTRINARISM TO REALPOLITIK

2019 ◽  
pp. 149-172
Author(s):  
Luis Ángel Hierro ◽  
Antonio José Garzón ◽  
Helena Domínguez-Torres
Keyword(s):  
European Union ◽  
Monetary Policy ◽  
Central Bank ◽  
European Central Bank ◽  
Central Banks ◽  
The European Union ◽  
European Monetary ◽  
Monetary Policies ◽  
European Central ◽  
European Monetary Policy

This paper describes the monetary policy of the European Central Bank since the birth of the Euro. The different economic situations and the monetary policies implemented during the mandate of each one of the three ECB presidents are analysed as a process of evolution. We study the situations of cyclical asynchrony together with the response given to it by the European monetary authority. We also assess the change experienced by the main economic indicators of the twelve founding countries during the 20 years of the single currency. The main conclusion obtained is that monetary policy has evolved from the strict approach defined in the Treaty on the Functioning of the European Union to an approach closer to that of the rest of central banks, which we have called “monetary realpolitik”.

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