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The undemocratic ECB, far more than other European institutions, helps feed the widespread attitudes of EU citizens that the EU is undemocratic, out of touch with their concerns, and unconcerned with their lot. "C'est un scandale !"
But what do you think, personally, about interest rates? Do you simply hold to the standard German strong-currency position, or can you see advantages to lower rates? When locusts move on, they leave nothing behind
I believe it is an advantage to have to be able to borrow in one's own currency, have the seignorage effect etc. The Euro has unique credibility due to the ECB statute. I'm not sure, but I guess the measures redstar suggests would reduce this credibility. While there is the advantage not to need wage moderation, there is also the disadvantage, e.g. for retired people, students on stipendium,... who can not strike, and often have a fixed amount of many, whichs value would shrink with inflation.
After all I believe as well that the current credit mess at least would have been smaller, if the interest rates in the US would have been higher. Certainly the interest rates of the Eurozone were even too low for Spain and Ireland. Malinvestment may not be better than no investment, even if it provides temporary work. Lich King/Caribou Barbie 08 Pain brings Katharsis
I would argue that there is no such thing as an independent central bank. In decoupling the central bank from the explicitly political process, you simply make it less accountable to all citizens are more explicitly accountable to the most powerful, those who own assets in the currency which a given central bank issues and manages.
But very much understood the popular view of the BUBA...er...ECB on the part of most Germans. "C'est un scandale !"
We like the constitutional court, the president, the central bank, the 'Kaiser' Franz Beckenbauer, the Bundestrainer,... All these jobs/people have one thing in common: Most people don't know how one gets this job. But nobody trusts the parliament or the government, they are mostly what they are because of elections.
The ECB is not accountable to anybody in a sense. It is a bit like the pope. It shall keep inflation low, but nobody really controls them. Of course keeping inflation low is helpful mostly for those who have assets. That's true. But it is so on purpose. And in the long run it is useful for those who intent to borrow, too, because real(!) interest payment is lower(, in theory). Lich King/Caribou Barbie 08 Pain brings Katharsis
