Political Independence of European Central Bank

Abstract

This article describes the issues associate with the political independence of the European Central Bank. In prelude author characterizes the functional models of the Central Bank. Presents Central Bank as institution dependent that is subordinated to government or institution independent of government. In further part of an article author is advancing arguments convincing for individual models of central baking. Political independence of Central Bank author is considering in personal, financial, institutional and functional aspect. Author is setting an example of breaking political ECB independence. The article emphasizes that a politically independent European Central Bank hinders its ability to take advantage of monetary policies for temporary political gains. It is the author’s opinion that even with the goal of political independence for the ECB it does not mean that there will be an absence of democratic control.