The extraordinary measures taken by the ECB to combat the fi nancial crisis have led many observers to question whether the bank has put its independence at risk. The bank’s vow to do “whatever it takes” to save the euro has added a second (and potentially contradictory) goal alongside its primary mission of achieving price stability. This expansion of the ECB mandate could expose the bank to national and European political demands, thereby endangering its prized independence.
KeywordsMonetary Policy Central Bank Euro Area European Central Bank Price Stability
Unable to display preview. Download preview PDF.