The Independent European Central Bank: Keynesian Alternatives
AbstractIn this paper, the author aims to question the assumptions underlying the economic case for the independent European Central Bank (ECB) and argues that although a European Clearing Agency (ECA) of the type Keynes envisaged for the international economy is not a panacea for the economic problems of the European Union (EU), it is, nonetheless, a better way forward and far superior to the ECB. The paper (1) outlines the theoretical basis of Keynesian monetary and financial theory; (2) aims to ascertain the extent to which credit availability is affected by the creation of an ECB and, on that basis, to offer a critical analysis of current proposals for an ECB; (3) looks closely at the case for the ECA, seen as performing a range of functions rather than having a remit defined simply in terms of strict monetary control, including a commitment to providing the necessary finance for full employment and a responsibility for ensuring that the burden of balance-of-payments adjustment falls upon both deficit and surplus countries.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 9908004.
Length: 31 pages
Date of creation: 12 Aug 1999
Date of revision:
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 31; figures: included
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Other versions of this item:
- Philip Arestis, 1999. "The Independent European Central Bank: Keynesian Alternatives," Economics Working Paper Archive wp_274, Levy Economics Institute.
- E - Macroeconomics and Monetary Economics
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