IDEAS home Printed from https://ideas.repec.org/p/zbw/ipewps/382014.html
   My bibliography  Save this paper

Policy-making of the European Central Bank during the crisis: Do personalities matter?

Author

Listed:
  • Basham, James
  • Roland, Aanor

Abstract

The European sovereign debt crisis represents an interesting opportunity to investigate the reaction of the European Central Bank as a crisis fighting institution and the importance of central bank personalities in policy execution. Accordingly, this paper aims at investigating to what extent the policy-making of the ECB during the crisis has been influenced by Trichet's and Draghi's different personalities. Based on Friedman's hypothesis that "accidents of personality" have a great impact on the functioning of a rulebased institution, we find that the clear differences in policy-making between Trichet and Draghi can be explained by specific features of their respective personalities. Institutions matter, but so do personalities.

Suggested Citation

  • Basham, James & Roland, Aanor, 2014. "Policy-making of the European Central Bank during the crisis: Do personalities matter?," IPE Working Papers 38/2014, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:382014
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/101312/1/790611287.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Martin Marcussen, 1998. "Central bankers, the Ideational Life-Cycle and the Social Construction of EMU," EUI-RSCAS Working Papers 33, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    2. Haas, Peter M., 1992. "Introduction: epistemic communities and international policy coordination," International Organization, Cambridge University Press, vol. 46(01), pages 1-35, December.
    3. F. Passacantando, 1996. "Building an institutional framework for monetary stability: the case of Italy (1979-1994)," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 49(196), pages 83-132.
    4. F. Passacantando, 1996. "Building an institutional framework for monetary stability: the case of Italy (1979-1994)," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 49(196), pages 83-132.
    5. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, Marzo.
    6. Dyson, Kenneth & Featherstone, Kevin, 1999. "The Road To Maastricht: Negotiating Economic and Monetary Union," OUP Catalogue, Oxford University Press, number 9780198296386.
    7. Sandholtz, Wayne, 1993. "Choosing union: monetary politics and Maastricht," International Organization, Cambridge University Press, vol. 47(01), pages 1-39, December.
    8. Acheson, Keith & Chant, John F, 1973. "Bureaucratic Theory and the Choice of Central Bank Goals," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 5(2), pages 637-655, May.
    9. Kapstein, Ethan Barnaby, 1992. "Between power and purpose: central bankers and the politics of regulatory convergence," International Organization, Cambridge University Press, vol. 46(01), pages 265-287, December.
    10. Alan S. Blinder, 1999. "Central Banking in Theory and Practice," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522608, March.
    11. James, Harold, 2012. "Making the European Monetary Union," Economics Books, Harvard University Press, number 9780674066830, December.
    12. Fawley, Brett W. & Neely, Christopher J., 2013. "Four stories of quantitative easing," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 51-88.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hamza Bennani, 2018. "Media Perception of Fed Chair's Overconfidence and Market Expectations," EconomiX Working Papers 2018-29, University of Paris Nanterre, EconomiX.

    More about this item

    Keywords

    European Central Bank; Central Bankers; Personality Theory; European Sovereign Debt Crisis; Monetary Policy;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ipewps:382014. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - Leibniz Information Centre for Economics). General contact details of provider: http://edirc.repec.org/data/iphwrde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.