Preparing the ECB for Enlargement (CEPR Policy Paper #6)

Preparing the ECB for Enlargement (CEPR Policy Paper #6)

by Richard E. Baldwin, Francesco Giavazzi, Erik Berglof, Mika Widgren
     
 

As the European Monetary Union begins to add member nations, central bank governors of each new member will become entitled to a vote on the European Central Bank's (ECB) key decisionmaking body, the Governing Council. Euroland's interest-setting body will thus expand from its current 18 members to 30 or more. The Bank's decisionmaking structure has worked well so

Overview

As the European Monetary Union begins to add member nations, central bank governors of each new member will become entitled to a vote on the European Central Bank's (ECB) key decisionmaking body, the Governing Council. Euroland's interest-setting body will thus expand from its current 18 members to 30 or more. The Bank's decisionmaking structure has worked well so far, having proved its mettle in a series of challenges—the Russian and LTCM crises, the oil and food price hikes, the stock market tech-wreck and the U.S. economic slowdown. But is the ECB ready for the challenge of enlargement? This report argues that the substantial increase of voters in the Governing Council will adversely affect the efficiency of the Bank's decisionmaking structure. The authors believe that this potential enlargement is a matter of urgent concern, and challenge the ECB and/or the European Commission to formulate a response to this challenge.

Product Details

ISBN-13:
9781898128632
Publisher:
Brookings Institution Press
Publication date:
02/01/2002
Pages:
45
Product dimensions:
8.50(w) x 11.00(h) x (d)

Meet the Author

Richard Baldwin is professor of International Economics at the Graduate Institute, Geneva and policy director of CEPR. Francesco Giavazzi is a professor of economics at Università Bocconi, Milano, research associate of the National Bureau of Economic Research (NBER), and research fellow of the Centre for Economic Policy Research (CEPR). Erik Berglöf is the Chief Economist and Special Adviser to the President at the European Bank for Reconstruction and Development (EBRD). Mika Widgrén was Professor of Economics at the Turku School of Economics, Finland.

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