The Way Forward — Central Banks with Financial Stability Mandates: The Case of the Eurosystem

AbstractThe following sections are included:IntroductionThe Central Bank's Legitimacy When It Has a Financial Stability RoleThe political nature of the central bank's financial stability roleThe perceived legitimacy of the Eurosystem as provider of financial stabilityThe Eurosystem's output legitimacyInput legitimacy through the manner of the ECB's creationAccountability and the EurosystemStaffing the Central Bank When It Has a Financial Stability RoleWhy macroeconomists are not enoughExpertise for a financial stability roleCombining the Financial Stability and Monetary Policy Roles of a Central BankReferences