Policy-making of the European Central Bank during the crisis: Do personalities matter?
James Basham and
No 38/2014, IPE Working Papers from Berlin School of Economics and Law, Institute for International Political Economy (IPE)
The European sovereign debt crisis represents an interesting opportunity to investigate the reaction of the European Central Bank as a crisis fighting institution and the importance of central bank personalities in policy execution. Accordingly, this paper aims at investigating to what extent the policy-making of the ECB during the crisis has been influenced by Trichet's and Draghi's different personalities. Based on Friedman's hypothesis that "accidents of personality" have a great impact on the functioning of a rulebased institution, we find that the clear differences in policy-making between Trichet and Draghi can be explained by specific features of their respective personalities. Institutions matter, but so do personalities.
Keywords: European Central Bank; Central Bankers; Personality Theory; European Sovereign Debt Crisis; Monetary Policy (search for similar items in EconPapers)
JEL-codes: E5 E6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ipewps:382014
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