Policymaking in the European Central Bank makes an important contribution to the literature on European monetary cooperation. In contrast to the prevailing literature’s emphasis on the institutional structure of the European Central Bank, Karl Kaltenthaler skillfully examines the factors that explain the policy choices of independent central bankers. Based on public choice theory, he presents a compelling explanation for the decision by Europe’s central bankers to largely emulate the policy strategy of Germany’s central bank, the Bundesbank. This book is essential reading for those interested in the European Union and monetary policymaking more generally.
Karl Kaltenthaler provides a detailed account of the origins, structure, and functions of the European Central Bank. His study, based on extensive interviews and other evidence, focuses on how the goals and principles that motivate European central bankers affect their approach to monetary policy. Policymaking in the European Central Bank is an in-depth exploration of one of the world's most important economic institutions. It will be useful and interesting to anyone concerned with understanding contemporary trends in monetary policy or in European integration.
The European Central Bank is an immensely powerful but very new institution. Karl Kaltenthaler's [book] is insightful, accessible, and the best treatment yet of what the European Central Bank is and why it follows the policies it does. Kaltenthaler reveals that central bankers, rather than functioning like remote and unaccountable bureaucrats, are political actors who care about economic outcomes but also about what people think of them.