EC233 Lecture Notes - Lecture 13: Business Cycle, German Federal Bank, Deflation
Document Summary
Ec233 lecture 13: influence on congress, appoints members of federal reserve board, appoints chairman, although u. s. president/fr chairman terms are not concurrent grounds of independence. The strongest argument for an independent central bank rests on the view that subjecting it to more political pressures would impart an inflationary bias to monetary policy. (see last week"s lecture. ) Proponents of a central bank under the control of the president or parliament argue that it is undemocratic to have monetary policy (which affects almost everyone in the economy) controlled by an unelected select group. European central bank: - january 1999: start-up of the european central bank (ecb) and. These conduct monetary policy for countries that are members of the european monetary union (emu): - patterned after the deutsche bundesbank (the german central bank), - euro area central banks from each country play role like that of. Federal reserve banks: - escb encompasses the ecb and the national central banks of the.
