There are remarkable rates, which have fallen in recent days – mainly because they are derived from German politicians. Finance Minister Schaeuble criticizes ECB chief Draghi to be partly responsible for the rise of the AFD. In a closed meeting to criticize financial politicians of the Union, the ECB, it is moving “on the edge of its mandate for price stability.” Even the transport minister complains: “The elimination of interest produces a gaping hole in the pension of citizens.”
Author: Patrick Bernau, Managing Editor of Economy online.
the anger over the monetary policy of the European Central Bank is large in the Union. Because the Fed has the impression that prices rose not fast enough. Actually, it aims at an inflation rate of almost two percent, in fact, they reached several months inflation to zero. So they cut interest rates so far that even banks have to pay penalty interest rate if they deposit money with the central bank. This solves Sumthin – precisely at a time of low inflation
Especially the Germans had fought for Independence
But now the anger at the Fed is uttered aloud.. The independence of the central bank is actually considered as a top priority. For just the Germans who fought in the establishment of monetary union: the European Central Bank to make as independent as the Bundesbank
In the still finance minister Theo Waigel took in the late 90s, a significant dissipation: He had the idea that gold reserves of the Bundesbank with a higher value to write to the balance sheet. So he would get paid a little more profit. But the Federal Bank provided strong resistance. Today, the tone is different. Michael Fuchs, after all, deputy parliamentary leader in the Bundestag, is a goal: “We are not loud enough.”
Three reasons for the change of mood
At this change in mood could contribute three factors. First, the fact that from other states for months comes criticism of the ECB – see crisis countries such as Greece politicians often, the ECB is its policy nor too hard. Second, growing concern that liquidity could cause crises and financial bubbles – for example, by driving the real estate prices in Germany up. Third, the inflation rate is even after months of the loose monetary policy is still higher, the discussions grow their effectiveness.
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in addition, a fourth factor: the pressure on the ECB seems precisely to support the policy for which the independence was meant. Actually central banks should be independent, so that they can devote themselves to the long-term welfare of its citizens, without being subject to the short-term interests of democratically elected politicians – the suspicion is: Straight politicians often preferred the loose monetary policy and the short-term economic fire over the long-term stability. ” / p>
However, the trend to political pressure on the central bank can also go in the other direction. In the United States, for example, call for just the Conservatives for several months more and more control over the central bank. Thus, the interest not soon go up.
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