The New European Central Bank: Taking Stock and Looking Ahead

The European Central Bank (ECB) was established in 1992 with the Treaty of Maastricht. It has evolved significantly since its inception in 1998, reflecting changes in monetary policy options, consideration of concerns other than low inflation, and its role in the Banking Union. This edited collection offers a retrospective and prospective account of the ECB, charting its evolution in detail with chapters written by leading academics and practitioners. It examines the substantive changes to monetary policy introduced by the ECB as a consequence of the financial and sovereign debt crisis, moves beyond monetary policy to new roles in banking supervision and resolution, and examines transformations to inter- and intra-institutional relations. The book also analyzes the ECB's crisis response, including unconventional monetary policy measures and risk management strategies, and examines the role played by objectives such as financial stability and environmental sustainability, the ECB's relationship to the Lender of Last Resort function, and its new responsibilities in the Banking Union.

Format: Hardback
Length: 480 pages
Publication date: 02 December 2022
Publisher: Oxford University Press

The European Central Bank (ECB) holds a significant place in the European legal order, having been established in the aftermath of the Treaty of Maastricht (1992). As an official EU institution, the ECB operates under the governance of EU law, showcasing a remarkable transformation since its inception in 1998. This evolution manifests in three primary ways: the expansion of monetary policy options, the inclusion of concerns beyond low inflation in its policy-making, and its pivotal role in the Banking Union. This edited collection provides a comprehensive retrospective and prospective analysis of the ECB, delving into its intricate evolution through chapters authored by esteemed academics and practitioners.

Part 1 delves into the substantive changes to monetary policy introduced by the ECB in response to the financial and sovereign debt crisis. By examining the legal basis behind these changes, the authors shed light on the underlying rationale and implications of the ECB's actions.

Part 2 extends the ECB's purview beyond monetary policy, exploring the new roles it has been called upon to fulfill. Notably, the ECB has assumed responsibility for banking supervision and resolution, playing a crucial role in ensuring the stability of the European financial system.

Parts 3 and 4 examine the transformations to inter- and intra-institutional relations within the ECB. The authors assess these developments, considering their impact on the nature and direction of the ECB in the present and future. They analyze the most salient and controversial elements of the ECB's crisis response, encompassing unconventional monetary policy measures and the ECB's risk management strategy.

Beyond monetary policy, the book explores the role played by objectives such as financial stability and environmental sustainability, the ECB's relationship to the Lender of Last Resort function, and its expanded responsibilities in the Banking Union. The authors examine these aspects, shedding light on the ECB's evolving mandate and its significance in shaping the European economic landscape.

In conclusion, this edited collection offers a comprehensive and insightful examination of the European Central Bank. It provides a valuable retrospective and prospective account of the ECB's evolution, highlighting its pivotal role in shaping the European financial landscape. Through the contributions of esteemed scholars and practitioners, the book offers valuable insights into the ECB's monetary policy, banking supervision, and crisis response, as well as its broader responsibilities in promoting financial stability and sustainability.

Dimension: 234 x 156 (mm)
ISBN-13: 9780198871231