TY  - UNPD
A1  - Feld, Lars P.
A1  - Wieland, Volker
T1  - The German Federal Constitutional Court ruling and the European Central Bank’s strategy
T2  - Working paper series / Institute for Monetary and Financial Stability ; 145
N2  - The ruling of the German Federal Constitutional Court and its call for conducting and communicating proportionality assessments regarding monetary policy have been the subject of some controversy. However, it can also be understood as a way to strengthen the de-facto independence of the European Central Bank. The authors shows how a regular proportionality check could be integrated in the ECB’s strategy that is currently undergoing a systematic review. In particular, they propose to include quantitative benchmarks for policy rates and the central bank balance sheet. Deviations from such benchmarks can have benefits in terms of the intended path for inflation while involving costs in terms of risks and side effects that need to be balanced. Practical applications to the euro area are provided
T3  - Working paper series / Institute for Monetary and Financial Stability - 145 
KW  - central bank independence
KW  - monetary law
KW  - monetary institutions
KW  - monetary policy strategy
KW  - proportionality
KW  - policy rules
KW  - quantitative easing
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/55482
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-554824
UR  - https://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/IMFS_WP_145.pdf
IS  - September 24, 2020
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -