Has the ECB to leave economic policy to the politicians?

This is a bit from the Opinion of the Advocate-General of the ECJ that should get much more attention. It would be really good if the ECB has to leave the Troika and has to curb its meddling in economic policy.

Real-World Economics Review Blog

Creative summary of this post by Henk de Vos

Will the extra-ordinary powerful position of the ECB come to and end?

The European Central Bank (ECB) is not only extra-ordinarily independent. It is, as there is no real countervailing power from a real Euro Area government, extra-ordinarily powerful (soft as well as hard power). And it does not hesitate to use its power, see these letters from Trichet, the former president of the ECB, to ‘Ireland’ and this letter from Trichet to Spain. To quote The Economist: these letters have an ‘imperious tone’. And, in my opinion, an ‘imperious content’.

The power of the ECB might however diminish. Today, the Advocate General of the Court of Justice of the European Union published his opinion about the Outright Monetary Transactions of the ECB (i.e. the open market policies which, according to macro textbooks, are part and parcel of conventional central bank…

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