EMU-enlargement and the Reshaping of Decision-making within the ECB Governing Council: A Voting-Power Analysis
The monetary policy of the European Central Bank (ECB) is the subject matter of this paper. We analyze the prospects for future price stability in an enlarged European Monetary and Economic Union (EMU). At the heart of this study are the potential e®ects of altering decision-making procedure within the Governing Council of the ECB on price stability in the eurozone. The authors compare the impact of three alternative reform scenarios of the ECB Governing Council with the help of a voting-power analysis. It is presumed that a considerable loss of current EMU-members’ influence power especially in favour of joining Central Eastern European Countries (CEECs) results in a loss of monetary credibility of the ECB: As transparency of the decision-making process within the ECB is lacking, markets may consider the ECB to be too much inclined to the economic performances of the CEECs. This has then a negative impact on the level of price stability in Europe. The voting-power analysis indicates which reform proposal is best with respect to a price-stability benchmark.
|Date of creation:||01 Jun 2004|
|Date of revision:||01 Jun 2004|
|Contact details of provider:|| Postal: Jean Monnet Centre of Excellence, Freie Universität Berlin, Ihnestrasse 22, D-14195 Berlin|
Web page: http://www.jmc-berlin.org
More information through EDIRC
|Order Information:|| Email: |
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.:
- Bindseil, Ulrich & Hantke, Cordula, 1997. "The power distribution in decision making among EU member states," European Journal of Political Economy, Elsevier, vol. 13(1), pages 171-185, February.
- Kirsten Lommatzsch & Silke Tober, 2003. "Zur Reform der Abstimmungsregeln im EZB-Rat nach der Erweiterung des Euroraums," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 70(5), pages 69-73.
- Barro, Robert J. & Gordon, David B., 1983.
"Rules, discretion and reputation in a model of monetary policy,"
Journal of Monetary Economics,
Elsevier, vol. 12(1), pages 101-121.
- Robert J. Barro & David B. Gordon, 1983. "Rules, Discretion and Reputation in a Model of Monetary Policy," NBER Working Papers 1079, National Bureau of Economic Research, Inc.
- Widgren, Mika, 1994. "Voting power in the EC decision making and the consequences of two different enlargements," European Economic Review, Elsevier, vol. 38(5), pages 1153-1170, May.
- Widgren, Mika, 1991. "Voting Power in the EC Decision Making and the Consequencesof two Different Enlargements," Discussion Papers 377, The Research Institute of the Finnish Economy.
- Mika Widgrén & Stefan Napel, 2001. "Inferior players in simple games," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(2), pages 209-220.
- Napel, Stefan & WidgrÉn, Mika, 2000. "Inferior Players in Simple Games," Discussion Papers 734, The Research Institute of the Finnish Economy.
- Alberto Alesina & Vittorio Grilli, 1991. "The European Central Bank: Reshaping Monetary Politics in Europe," NBER Working Papers 3860, National Bureau of Economic Research, Inc.
- Alesina, Alberto F & Grilli, Vittorio, 1991. "The European Central Bank: Reshaping Monetary Politics in Europe," CEPR Discussion Papers 563, C.E.P.R. Discussion Papers.
- Krause, George A, 1996. "Agent Heterogeneity and Consensual Decision Making on the Federal Open Market Committee," Public Choice, Springer, vol. 88(1-2), pages 83-101, July.
- Hans Peter Grüner & Alexandra Kiel, 2001. "Collective decisions with interdependent valuations," GK working paper series 2001-02, Post Graduate Programme "Allocation on Financial Markets", University of Mannheim, revised Sep 2001.
- Gabriel MANGANO, 1999. "Monetary Policy in EMU : a Voting-Power Analysis of Coalition Formation in the European Central Bank," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9908, Université de Lausanne, Faculté des HEC, DEEP.
- Kirsten Lommatzsch & Silke Tober, 2002. "Geldpolitische Aspekte der Erweiterung des Euroraums," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(15), pages 229-237.
- Baldwin, Richard & Berglöf, Erik & Giavazzi, Francesco & Widgrén, Mika, 2000. "EU Reforms for Tomorrow’s Europe," CEPR Discussion Papers 2623, C.E.P.R. Discussion Papers.
- Rudi Dornbusch & Carlo Favero & Francesco Giavazzi, 1998. "Immediate challenges for the European Central Bank," Economic Policy, CEPR;CES;MSH, vol. 13(26), pages 15-64, 04.
- Helge Berger & Jakob de Haan & Robert Inklaar, 2003. "Restructuring the ECB," CESifo Working Paper Series 1084, CESifo Group Munich.
- Philipp Maier & Maarten Hendrikx, 2002. "Implications of EMU enlargement for European monetary policy: A political economy view," Macroeconomics 0207007, EconWPA.
- Philipp Maier & Maarten Hendrikx, 2002. "Implications of EMU Enlargement for European Monetary Policy: A Political Economy View," MEB Series (discontinued) 2002-4, Netherlands Central Bank, Monetary and Economic Policy Department.
- Grüner, Hans Peter, 1999. "On the Role of Conflicting National Interests in the ECB Council," CEPR Discussion Papers 2192, C.E.P.R. Discussion Papers.
- Rudiger Dornbusch & Carlo A. Favero & Francesco Giavazzi, 1998. "The Immediate Challenges for the European Central Bank," NBER Working Papers 6369, National Bureau of Economic Research, Inc.
- Vaubel, Roland, 1999. "The Future of the Euro : A Public Choice Perspective," Discussion Papers 570, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
- Gildea, John A, 1992. "The Regional Representation of Federal Reserve Bank Presidents," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 24(2), pages 215-225, May.
- Süppel, Ralph & von Hagen, Jürgen, 1994. "Central Bank Constitutions for Monetary Unions," CEPR Discussion Papers 919, C.E.P.R. Discussion Papers.
- Grüner, Hans Peter & Kiel, Alexandra, 2001. "Collective Decisions with Interdependent Valuations," CEPR Discussion Papers 3003, C.E.P.R. Discussion Papers.
- von Hagen, Jurgen & Suppel, Ralph, 1994. "Central bank constitutions for federal monetary unions," European Economic Review, Elsevier, vol. 38(3-4), pages 774-782, April.
- Helge Berger, 2002. "The ECB and Euro-Area Enlargement," IMF Working Papers 02/175, International Monetary Fund.
- Chappell, Henry Jr. & Havrilesky, Thomas M. & McGregor, Rob Roy, 1995. "Policymakers, institutions, and central bank decisions," Journal of Economics and Business, Elsevier, vol. 47(2), pages 113-136, May. Full references (including those not matched with items on IDEAS)