HODSON, Dermot
Economic and monetary union : balancing credibility and legitimacy in an asymmetric policy-mix - June 2002
There is a double asymmetry in the structure of economic and monetary union (EMU). First, monetary policy is uniform while national economic policies are merely co-ordinated. The credibility of monetary policy is underwritten by and independent European Central Bank, but this is not sufficient as the objective of price stability depends on other aspects of economic policy. Thus greater coordination of national economic policies is needed to secure a credible monetary policy. This highlights the second asymmetry. The emphasis on creadibility has been such that due regard has not been given to the legitimacy of the EMU policy architecture. If policy-making is to be effective, credible and legimate, decision makers need to pay attention to four key legitmacy indicator: input, output, values and process. It seems invitable that the sucess of the developing policy architecture and its effects, both in its monetary and economic dimension, will be judged againt these broader standards
Política Monetária
Política Econômica
Banco Central
Legitimidade
Europa
Economic and monetary union : balancing credibility and legitimacy in an asymmetric policy-mix - June 2002
There is a double asymmetry in the structure of economic and monetary union (EMU). First, monetary policy is uniform while national economic policies are merely co-ordinated. The credibility of monetary policy is underwritten by and independent European Central Bank, but this is not sufficient as the objective of price stability depends on other aspects of economic policy. Thus greater coordination of national economic policies is needed to secure a credible monetary policy. This highlights the second asymmetry. The emphasis on creadibility has been such that due regard has not been given to the legitimacy of the EMU policy architecture. If policy-making is to be effective, credible and legimate, decision makers need to pay attention to four key legitmacy indicator: input, output, values and process. It seems invitable that the sucess of the developing policy architecture and its effects, both in its monetary and economic dimension, will be judged againt these broader standards
Política Monetária
Política Econômica
Banco Central
Legitimidade
Europa
