 Interests and 'Independence': The European Central Bank and the theory of bureaucracyInternational Review of Applied Economics, 2002, vol. 16, issue 1, 51-69 Abstract: The European Central Bank has an unprecedented degree of statutory independence. This is presumably attributable to the view that central banks, unimpeded by external forces, pursue the public interest. That presumption has not always been common in the economics literature, even in the discussion of central banking. The theory of bureaucracy suggests that such institutions pursue their own interests. It is here applied to the European central bank as it was in the past to other central banks. First, consideration is given to what is today implied by the view that central banks are primarily interested in maintaining their independence, maximising their discretion, and avoiding blame for poor outcomes. Second, the ECB's explanations of how it sees its role and status and its presentation of its strategy are considered. Certain limitations in the form of obscure explanation, confused analysis and selective referencing are identified. These appear to suggest that the ECB is concerned with the pursuit of its own agenda. Particular attention is drawn to the danger of paying too much attention to what it says about its own 'accountability'. Date: 2002 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:irapec:v:16:y:2002:i:1:p:51-69 Ordering information: This journal article can be ordered from DOI: 10.1080/02692170110109335 Access Statistics for this article International Review of Applied Economics is currently edited by Professor Malcolm Sawyer More articles in International Review of Applied Economics from Taylor & Francis Journals |
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