In May 2020, for the first time in its history, the Federal Constitutional Court (FCC) of Germany declared Union acts as being ultra vires. According to the FCC, the European Central Bank (ECB) and the Court of Justice of the European Union (CJEU) had acted beyond their mandates because they did...

Controllability of longer-term interest rates requires that the persis-tence of their deviations from the central bank's policy rate (i.e. thepolicy spreads) remains suffciently low. This paper applies fractionalintegration techniques to assess the persistence of policy spreads ofeuro area money...

Monetary policies of the ECB and US Fed can be characterised by “Taylor rules”, that is bothcentral banks seem to be setting rates by taking into account the “output gap” and inflation.We also set up and tested Taylor rules which incorporate money growth and the euro-dollarexchange rate,...

The aim of this note is to provide an overview of various measures of “excess liquidity”,which can be defined as the deviation of the actual stock of money from an estimated equilibriumlevel. Given their dynamic nature, the excess liquidity measures under review are - in thelight of long and...

One major outcome of the review of the ECB’s “two pillar monetary policy strategy”, whichwas published on 8 May 2003, has been the de facto downgrading of the hitherto prominentrole assigned to the stock of money. According to the authors’ judgement, however, there is astrong theoretical...

This paper tackles the issue of the incompleteness of information available to thecentral bank when taking its monetary policy decisions. It is focused on euro areadata and based on the simplistic assumption of the central bank following a simplemonetary policy rule à-la-Taylor. Along the lines...

Mit dem Beitritt mittel- und osteuropäischer Länder (MOEL) sowie Maltas undZyperns zur Europäischen Union (EU) kann die EU auf bis zu 27 Mitglieder anwachsen.Neben den Kriterien, die von den Beitrittskandidaten vor ihrer Aufnahmeerfüllt werden müssen, stellte der Europäische Rat von...

This paper evaluates the predictive power of different information sets for the European Central Bank(ECB) interest rate setting behavior. We employ an ordered probit model, i.e. a limited dependent variableframework, to take into account the discreteness displayed by policy rate changes. The...

Die rechtliche Beurteilung der Verwendung des Gewinns von Zentralbanken bewegtsich im Überschneidungsbereich von:§ Währungsrecht§ Finanzverfassungsrecht und§ FinanzpolitikRechtliche Bedenken ergeben sich imWesentlichen aus den verfassungsrechtlichenVorgaben für die Staatsfinanzierung sowie...