Michael Heine, Hansjorg Herr
"A very well-written book providing a comprehensive overview of the ECB and the major challenges facing European Monetary Union over the past two decades." – Peter Bofinger, Würzburg University and former member of the German Council of Economic Experts
The European Central Bank administers monetary policy for the eurozone and is tasked with maintaining price stability by keeping inflation below 2 per cent. This brief mandate belies the complexity of managing the monetary policy for the 19 member states of the euro, not to mention the political implications thereof.
This book sets out the history, development and day-to-day workings of this key institutional pillar of the European Union. It assesses its work, independence, the policies and instruments at its disposal and the evolution of its role during, and after, the eurozone crisis of 2010. Incomplete monetary union, Germany's hegemonic ambitions and different economic policies from individual member countries are shown to pose formidable challenges to the ECB's macroeconomic management.
1. Introduction: European integration 2. From Bretton Woods to European Monetary Union 3. The Maastricht Treaty and the Stability and Growth Pact 4. The ECB’s structure and its political and legal framework 5. Preconditions for a stable monetary union 6. The failure of the 2-pillar strategy of the ECB and the revival of Wicksell 7. Increasing economic fragility before the financial market crisis 8. Monetary policy and the Great Recession 9. Monetary policy and the escalation of the euro crisis up to 2012 10. The ECB holds the euro together 11. The fiscal policy framework in the ECB 12. Financial market supervision, banking union and financial market regulation 13. Prospects for European policy making and the EMU
Michael Heine is Professor at Hochschule für Technik und Wirtschaft Berlin at the University of Applied Sciences, Berlin.
Hansjorg Herr is Professor at the Berlin School of Economics. His books include Decent Capitalism: A Blueprint for Reforming our Economies (2011) and Macroeconomic Policy Regimes in Western Industrial Countries (2011).