The monetary policy instruments of the European Central Bank

  • Lukas Menkhoff


Although it is possible in theory to conceive entirely new monetary policy instruments for the ECB, or for the ESCB overall, practical reasons dictate that such a complete redesign is somewhat unlikely, as numerous instruments already exist in the Member States of the European Union. Indeed, a total innovation would probably be a pointless exercise, as it would involve a substantial degree of uncertainty about the way in which specific instruments would or could function, a consequence which can be avoided by building on existing arrangements. The intrinsic value of continuity and stability as key economic policy factors is particularly critical for the sensitive financial markets.


Monetary Policy Central Bank European Central Bank Money Market Currency Reserve 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1997

Authors and Affiliations

  • Lukas Menkhoff
    • 1
  1. 1.Department of EconomicsAachen University of TechnologyAachenGermany

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