Otmar Issing, 02 April 2018

The independence of central banks has again become a prominent subject in academia, politics and the media. However, this time, in contrast to the past, critical voices dominate. This column, taken from a recent VoxEU eBook, asks how this turnaround in opinion can be explained, and whether the independence of central banks will survive.

Jens Nordvig, 25 November 2013

Having promised to do ‘whatever it takes’ to ensure the survival of the euro, the ECB now faces the problem of record high unemployment combined with a strong currency. There is accumulating evidence that the ECB is more willing to fight currency appreciation than the Bundesbank would have been. Capital inflows have been a key source of recent upward pressure on the euro. Should this continue, the ECB may need to intervene more aggressively in order to promote economic recovery in the Eurozone.

Jacob Kirkegaard, 08 October 2012

Political pressures are rising again in Europe. This column argues that reactions in parliaments, central banks and on the street are well within the bounds of predictable reactions to hard times. These developments change nothing of significance in the calculus concerning the eventual success of the Eurozone crisis response.

Clemens Jobst, 19 July 2011

The debate over TARGET balances and whether there is an ongoing stealth bailout in the Eurozone has attracted attention from top economists and journalists in the past month. This column argues that the reason why the arguments keep dragging on is the lack of a clear framework for the discussion, something this column aims to provide.

Hans-Werner Sinn, 22 June 2007

Seigniorage is generated when a central bank creates money and gives it to the private sector in exchange for interest-bearing assets. Under the Maastricht Treaty, the interest earnings are distributed according to country size, but given the dominant role of the DM before the euro, this allocation rule cost Germany about €30 billion.

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