Monday, June 10, 2013

German Courts Can Overrule ECB Monetary Stimulus?

It looks like that can happen:
Germany's constitutional court in the south-western city of Karlsruhe is set to hold a public hearing on Tuesday and Wednesday on the legality of the European Central Bank's bond buying plan after receiving complaints that the ECB was over-stepping its remit from, among others, the country's own central bank, the Bundesbank.
So can Ireland or Spain or Portugal take the ECB to court for engaging in excessively tight monetary policy? I really don't understand how all this works. My impression was that the ECB was insulated from political pressures in EU member countries. But it looks like Germany can try to stop the ECB from doing one of the minor things it's doing to save Europe from ongoing economic disaster, while everyone else is powerless to affect central bank policy in ways that save themselves.

There's been a lot of talk of kicking Greece out of the Euro. Maybe it'd be better if the other countries just kicked Germany out. 
Post a Comment