Based on the primary law of the European Union as defined by the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) the Professor of Money, Currency and Central Bank Law sums up the basic principles and responsibilities in the monetary union.
In this regard, he points out that there is no inflation target according the EU law but only the target of price stability and that there is no mandate from a legal point of view. He also explains the limits of the implementation of monetary policy instruments. “Monetary policy shall apply to the whole monetary area prohibiting the selective subsidization of single members by the central bank”, Siekmann writes. He also underlines the differences between the ESCB and the Federal Reserve System of the United States.
IMFS Working Paper No. 101
Ziele, Aufgaben und Befugnisse des Europäischen Systems der Zentralbanken (ESZB)
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