Institutional Sources of German Monetary Policy Dynamics

This article seeks to answer the question of why we see continuity in German monetary policy but relative discontinuity in German policy toward European monetary regimes. The paper develops an analytical framework for understanding the factors that account for the dynamics of policy. The article argues that the institutional structure of policy-making is the key factor that accounts for patterns of policy dynamics. The way domestic policy institutions are structured will determine who has a say and when they have a say in policy-making, thus shaping the pattern of policy dynamics. The article shows that the institutions of policy-making are crucial determinants in the dynamics of German monetary and regime policy by the way they offer or block opportunities, at particular points in the policy process, for interested policy actors to achieve the types of policies they want.