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ECB and political authorities: the need for a new balance

2021-03-15T20:07:44.393Z


ANALYSIS -Recent debates about the future of Covid debt in France have left out the essential: what monetary policy do we want to pursue vis-à-vis the ECB? A dialogue must be established between our institutions in order to avoid being walled in "above ground" discussions.


Until now reserved for a small circle of specialists, the rather austere debates on currency have gained in intensity in recent months.

Between aficionados of bitcoin and other cryptocurrencies, allergic to any institutional supervision, enthusiasts of the cancellation of public debt or champions of the "greening" of its action, monetary policy has entered the public arena.

So much the better.

The choices of central bankers are too crucial not to be widely discussed.

States, always suspected by the economic powers of manipulating money, lost, during the rise of capitalism, direct control of monetary issuance.

The governance of monetary policy becomes dual.

A few years after the creation of the Bank of France in 1806, Napoleon summed up the tension, which lasted a long time between central bankers and political:

"I want the Bank to be enough in the hands of the government and are not too . "

Central bank intervention

The liberal wave

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Source: lefigaro

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