How Central Bankers See it: The First Decade of ECB Policy and Beyond

55 Pages Posted: 18 Nov 2008 Last revised: 5 Aug 2010

See all articles by Stephen G. Cecchetti

Stephen G. Cecchetti

Brandeis International Business School; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Kermit L. Schoenholtz

New York University - Stern School of Business - Department of Economics

Date Written: November 2008

Abstract

In this history of the first decade of ECB policy, we also discuss key challenges for the next decade. Beyond the ECB's track record and an array of published critiques, our analysis relies on unique source material: extensive interviews with current and former ECB leaders and with other policymakers and scholars who viewed the evolution of the ECB from privileged vantage points. We share the assessment of our interviewees that the ECB has enjoyed many more successes than disappointments. These successes reflect both the ECB's design and implementation. Looking forward, we highlight the unique challenges posed by enlargement and, especially, by the euro area's complex arrangements for guarding financial stability. In the latter case, the key issues are coordination in a crisis and harmonization of procedures. As several interviewees suggested, in the absence of a new organizational structure for securing financial stability, the current one will need to function as if it were a single entity.

Suggested Citation

Cecchetti, Stephen G. and Schoenholtz, Kermit L., How Central Bankers See it: The First Decade of ECB Policy and Beyond (November 2008). NBER Working Paper No. w14489. Available at SSRN: https://ssrn.com/abstract=1303588

Stephen G. Cecchetti (Contact Author)

Brandeis International Business School ( email )

415 South Street
Waltham, MA 02453
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States
212-720-8629 (Phone)
212-720-2630 (Fax)

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Kermit L. Schoenholtz

New York University - Stern School of Business - Department of Economics ( email )

44 W. 4th Street
Suite 7-89
New York, NY 10012
United States
212-998-0868 (Phone)

HOME PAGE: http://w4.stern.nyu.edu/faculty/bio/kim-schoenholtz

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