The German Constitutional Court’s ruling on the ECB’s asset purchase programme is open to much criticism but it can hardly be blamed for raising an important question.
Date: May 12, 2020
Topic: European Macroeconomics & Governance
From its pretence to establish itself as a custodian of the custodians to the narrowness of its perspective on central bank policy and the parochial assessment of the distributional consequences of monetary decisions, there is much to criticize in the ruling by the German Constitutional Court on the asset purchase programme initiated by the ECB in 2015. But it can hardly be blamed for raising an important question.
Europe’s central bank was born with the precisely defined mandate of preserving price stability. Over the years,