The Relationship Between the European Central Bank and the National Central Banks within the Eurosystem
Even before the launch of the euro, the relationship between the European Central Bank (ECB) and Europe’s politicians hit the headlines. There was the tussle over the appointment of the president, when France promoted the claims of its candidate, and, later, calls by Germany’s new Social Democrat government for lower interest rates. Less discussed, but possibly more important in practice, is the relationship between the new monetary authority and the existing national central banks (NCBs), which together as the European System of Central Banks (ESCB) devise and implement policy.
It is crucial that the European System of Central Banks develops into a truly European organization with a European outlook. Regional or national monetary policy in EMU cannot and will not exist. All monetary policy decisions and actions will have to be based on Euro-area wide analyses and considerations. (Willem Duisenberg, President of ECB, 1999)
KeywordsMonetary Policy Central Bank European Central Bank European Central Credit Institution
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