Political Pressure, Rhetoric and Monetary Policy

Lessons for the European Central Bank

Philipp Maier, formerly Economist, Monetary and Economic Policy Department, De Nederlandsche Bank, Amsterdam, The Netherlands

Philipp Maier offers a unique examination of the extent to which governments and various interest groups have exerted pressure on central banks. The book looks in particular at the Deutsche Bundesbank – which acted as the blueprint for the European Central Bank (ECB) – and utilises an original set of indicators to measure external pressure and support from the government and other institutions.

‘This book is a must-read for serious students and scholars of monetary institutions. It is comprehensive in its coverage of the relevant issues that arise in testing political economy theories of central banking, and is rich with ideas for testing possible political influences on central banks across the globe.’
– Michelle R. Garfinkel, Public Choice

‘By empirically analysing the rhetoric and decisions of the "most independent central bank in the world", Philipp Maier provides a fresh perspective on the eternal triangle of government, the financial sector and monetary authority. Maier’s findings regarding the actual independence of the Bundesbank’s monetary policy do not only provide a better explanation of the past. Equally important are the author’s innovative analyses which provide a greater understanding of the future prospects and challenges for the European Central Bank, at a time when Europe’s key monetary institution faces the impact of a broadening EMU.’
– Peter A.G. van Bergeijk, Netherlands Competition Authority, The Netherlands