According to the latest ECB Working Paper, the ECB is the central bank that dedicates the greatest amount of external communication to fiscal policies. Not only that, it does it in a normative way, trying to persuade governments on how to use fiscal policy.
You tell me. The independent ECB tries to make governments dependent when they manage fiscal policy. This makes fiscal policy a function of ECB’s goals, price stability only, if governments were to listen to the ECB, that is, which they actually do.
It is mad world out there.
I now found a new good reason to ask for a reform of the ECB mandate toward price stability and employment: to obtain not only monetary but also fiscal expansion, materializing so as to deal with unemployment and recessions.
28/09/2012 @ 09:21
“In spite of the words of the ingenuous (which is all of us at one time or another), it is not enough to speak the truth. It is worthless in human relationships if it is not believable, and perhaps this should even be its main characteristic. The truth is only half of what is needed, the other half is called believability.”
José Saramago, A bagagem do viajante