European Monetary Policy and the ECB Rotation Model: Voting Power of the Core versus the Periphery
AbstractWe analyze the ECB Governing Council's voting procedures. The literature has by now discussed numerous aspects of the rotation model but does not account for many institutional aspects of the voting procedure of the GC. Using the randomization scheme based on the multilinear extension (MLE) of games, we try to close three of these gaps. First, we integrate specific preferences of national central bank presidents, i.e. their desired interest rates. Second, we address the agenda-setting power of the ECB president. Third, we do not simulate an average of the decisions but look at every relevant point in time separately.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 983.
Length: 39 p.
Date of creation: 2010
Date of revision:
Euro area; European Central Bank; monetary policy; rotation; voting rights;
Other versions of this item:
- Ansgar Belke & Barbara von Schnurbein, 2010. "European Monetary Policy and the ECB Rotation Model – Voting Power of the Core versus the Periphery," Ruhr Economic Papers 0175, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-03-28 (All new papers)
- NEP-CBA-2010-03-28 (Central Banking)
- NEP-CDM-2010-03-28 (Collective Decision-Making)
- NEP-EEC-2010-03-28 (European Economics)
- NEP-MON-2010-03-28 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huefner, Felix P & Friedrich Heinemann, 2003.
"Is the View from the Eurotower Purely European? - National Divergence and ECB Interest Rate Policy,"
Royal Economic Society Annual Conference 2003
110, Royal Economic Society.
- Friedrich Heinemann & Felix P. Huefner, 2004. "Is The View From The Eurotower Purely European? - National Divergence And Ecb Interest Rate Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(4), pages 544-558, 09.
- Heinemann, Friedrich & Huefner, Felix P., 2002. "Is the View from the Eurotower Purely European? National Divergence and ECB Interest Rate Policy," ZEW Discussion Papers 02-69, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Gerling, Kerstin & Gruner, Hans Peter & Kiel, Alexandra & Schulte, Elisabeth, 2005.
"Information acquisition and decision making in committees: A survey,"
European Journal of Political Economy,
Elsevier, vol. 21(3), pages 563-597, September.
- Kiel, Alexandra & Gerling, Kerstin & Schulte, Elisabeth & Grüner, Hans Peter, 2003. "Information acquisition and decision making in committees: a survey," Working Paper Series 0256, European Central Bank.
- Christian Fahrholz & Philipp Mohl, 2004. "EMU-enlargement and the Reshaping of Decision-making within the ECB Governing Council: A Voting-Power Analysis," Eastward Enlargement of the Euro-zone Working Papers wp23, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Jun 2004.
- Ellen E. Meade & D. Nathan Sheets, 2002.
"Regional influences on U.S. monetary policy: some implications for Europe,"
International Finance Discussion Papers
721, Board of Governors of the Federal Reserve System (U.S.).
- Ellen E. Meade & D. Nathan Sheets, 2002. "Regional Influences on U.S. Monetary Policy: Some Implications for Europe," CEP Discussion Papers dp0523, Centre for Economic Performance, LSE.
- Carsten Hefeker, 2001.
"Federal Monetary Policy,"
CESifo Working Paper Series
422, CESifo Group Munich.
- Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
- Ansgar Belke & Barbara Styczynska, 2006.
"The Allocation of Power in the Enlarged ECB Governing Council: An Assessment of the ECB Rotation Model,"
Journal of Common Market Studies,
Wiley Blackwell, vol. 44, pages 865-897, December.
- Ansgar Belke & Barbara Styczynska, 2004. "The Allocation of Power in the Enlarged ECB Governing Council: An Assessment of the ECB Rotation Model," Diskussionspapiere aus dem Institut fÃ¼r Volkswirtschaftslehre der UniversitÃ¤t Hohenheim 242/2004, Department of Economics, University of Hohenheim, Germany.
- Gerlach-Kristen, Petra, 2006. "Monetary policy committees and interest rate setting," European Economic Review, Elsevier, vol. 50(2), pages 487-507, February.
- Ullrich, Katrin, 2004. "Decision-Making of the ECB: Reform and Voting Power," ZEW Discussion Papers 04-70, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ansgar Belke, 2003. "The rotation model is not sustainable," Intereconomics: Review of European Economic Policy, Springer, vol. 38(3), pages 119-124, May.
- Francesco Passarelli & Jason Barr, 2004.
"Preferences, the Agenda Setter, and the Distribution of Power in the EU,"
Working Papers Rutgers University, Newark
2004-012, Department of Economics, Rutgers University, Newark.
- Francesco Passarelli & Jason Barr, 2007. "Preferences, the Agenda Setter, and the Distribution of Power in the EU," Social Choice and Welfare, Springer, vol. 28(1), pages 41-60, January.
- Owen, G & Shapley, L S, 1989. "Optimal Location of Candidates in Ideological Space," International Journal of Game Theory, Springer, vol. 18(3), pages 339-56.
- Meade, Ellen E & Sheets, D Nathan, 2005. "Regional Influences on FOMC Voting Patterns," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(4), pages 661-77, August.
- Ellen Meade, 2003. "A (critical) appraisal of the ECB’s voting reform," Intereconomics: Review of European Economic Policy, Springer, vol. 38(3), pages 129-131, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.