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)
Unable to display preview. Download preview PDF.
- Begg, D., De Grauwe, P., Giavazzi, F., Uhlig, H. and Wyplosz, C. (1998) The ECB: Safe at any speed?, London: Centre for Economic Policy Research.Google Scholar
- Duisenberg, W. F. (1998a) Speech to the World Economic Forum, Davos, 30 January.Google Scholar
- Duisenberg, W. F. (1998b) Speech given to the Royal Institute of International Affairs, London, 27 November.Google Scholar
- Duisenberg, W. F. (1999) Interview with the Editor, Central Banking, 9(3): 21–32.Google Scholar
- European Central Bank (1998) The Single Monetary Policy in Stage Three, September, Frankfurt.Google Scholar
- EMI (1997) General Documentation on ESCB Monetary Policy Instruments and Procedures, Frankfurt.Google Scholar
- Goodhart, C. and Schoenmaker, D. (1993) ‘Institutional separation between supervisory and monetary agencies’, Financial Markets Group, London School of Economics.Google Scholar
- IMF (1998) International Capital Markets, Washington DC, September, pp. 104–10Google Scholar
- Lannoo, K. (1998) ‘What role for the ECB?’ The Financial Regulator, 3(2), London.Google Scholar
- Trichet, J-C. Interview with the Editor, Central Banking, 8(3): 12–22 (1997/8).Google Scholar
- White, W. R. (1998) ‘The coming transformation of continental European banking’, BIS working papers, No. 54.Google Scholar