The single monetary policy and its decentralised implementation: An assessment
This paper assesses the decentralised implementation of monetary policy by the Eurosystem in terms of its transparency, efficiency and simplicity. Com
This paper was prepared for the Committee on Economic and Monetary Affairs of the European Parliament (ECON) as an input for the Monetary Dialogue of 25 September 2017 between ECON and the President of the ECB. (). Copyright remains with the European Parliament at all times.â€
While the Eurosystem has considerably improved its operational transparency in the last few years, it is still lagging the Federal Reserve System (Fed), especially in terms of the information it provides on operating costs and staff numbers, for which it provides very scarce data. In addition, the available information is scattered throughout different publications, rather than being presented in a userfriendly fashion.
Compared to the Fed, the Eurosystem seems to have higher staff numbers and operational costs for similar tasks. Also because of the Treaty requirement to implement monetary policy in a decentralised way, the Eurosystem’s implementation of monetary policy is fairly complex.
Related content
The European Central Bank’s operational framework and what it is missing
This paper attempts to fill in the gaps in the European Central Bank's framework review
The European Central Bank’s timid operational framework update
The European Central Bank announced limited changes to its operational framework – which is probably right given current uncertainty
Central banks: uncertainty is the problem, not managing the trilemma
Regaining price stability is difficult but doable; the bigger problem facing central banks is economic uncertainty.
