New working paper on price and financial stability
According to Siekmann, from a legal perspective, the role of monetary policy does not involve obliging states to implement structural reforms and to pursue a sound fiscal policy. Also in view of the principle of democracy there have to be limits for autonomy, he argues. Otherwise it has to be justified by special reasons, which holds true for price stability but not for financial stability, Siekmann concludes.
IMFS Working Paper 104 (in German)
Helmut Siekmann
"Preis- und Finanzstabilität: der Primat der Politik, der rechtliche Rahmen und das "ökonomische Gesetz"
(PDF, 245 KB)