IMFS Working Paper by Lars Feld and Volker Wieland on the ruling of the GFCC and ECB bond purchases

The ruling of the German Federal Constitutional Court and its call for conducting and communicating proportionality assessments regarding monetary policy can be used as a way to strengthen the independence of the European Central Bank (ECB). This is the conclusion Prof. Lars P. Feld and Prof. Volker Wieland draw in a a new IMFS Working Paper.

The researchers of the German Council of Economic Experts explain in their paper how a regular proportionality check could be integrated in the ECB’s strategy that is currently undergoing a systematic review. They propose to include quantitative benchmarks for policy rates and the central bank balance sheet.

IMFS Working Paper 145
Lars P. Feld, Volker Wieland
The German Federal Constitutional Court Ruling and the European Central Bank's Strategy (PDF)