Abstract
According to architect designs, the euro was to be a pan-European version of the hard Deutsche mark: Bundesbank vigilantes would guarantee that the ECB would pursue sound money principles. This has all turned out to be pure fiction. Berlin and the Bundesbank acting together could have challenged the ECB’s putting Europe under the 2% regime. Subsequently they could have blocked the path to radical monetary experimentation which the regime had opened up. Thus Germany would have halted the gravy train (in fact a “drug train”) of tax transfers to the south and especially Italy. But none of this happened. The fault lies in part with specific individuals, including chancellors and Bundesbank presidents, and more generally with profound failures of German democracy. Germany could still turn the clock back.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Beyer, A., Gaspar, V., Gerberding, C., & Issing, O. (2009, March). Opting Out of the Great Inflation: German Monetary Policy After the Break Down of Bretton Woods (ECB Working Paper Series No. 1020).
Brown, B. (2015). Euro Crash. Basingstoke: Palgrave.
Brown, B. (2016, April 21). Jens Weidmann’s Disastrously Misplaced Loyalty to the Central Bankers Club. Hudson Institute.
Emminger, O. (1977, June). The D-Mark in the Conflict Between Internal and External Equilibrium 1948–75: Essays in International Finance, No. 122.
Geberding, C., Seitz, F., & Worms, A. (2005, December). How the Bundesbank Really Conducted Monetary Policy. The North American Journal of Economics and Finance., 16(3), 277–292.
Hildebrand, P. (2004, November 23). From Monetarism to the Inflation Forecast: 30 Years of Swiss Monetary Policy. Public lecture, University of Berne, Berne.
Joerges, C. (2015, November 18). What Is Left of the European Economic Constitution After the Gauweiler Litigation (pp. 99–118). ZenTra Working Paper in Transnational Studies, no. 60.
Weidmann, J. (2016, April 12). Interview with the Financial Times, Bundesbank’s Weidmann Rebukes Draghi Critics in Berlin.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Brown, B. (2018). Germany Abdicates Hard Money Power. In: The Case Against 2 Per Cent Inflation. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-89357-0_8
Download citation
DOI: https://doi.org/10.1007/978-3-319-89357-0_8
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-89356-3
Online ISBN: 978-3-319-89357-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)