How to reform the European Central Bank
Résumé
The European Central Bank has by and large applied the right monetary policy, according to Jean-Paul Fitoussi and Jérôme Creel. Nevertheless the authors argue for a range of reforms that would make the ECB more effective and accountable. They suggest a role for the European Parliament in setting monetary policy targets. And with EU enlargement around the corner, they propose reforms to the composition of the ECB’s policymaking council. Finally, they make the case for a thorough revamp of the Stability and Growth Pact, which threatens to strangle Europe’s economic recovery.Jean-Paul Fitoussi is a Professor at the Paris Institut d’Études Politiques, and President of the OFCE (Observatoire français des conjonctures économiques). Jérôme Creel is a research officer at the OFCE.