'Tough Love': How the ECB's Monetary Financing Prohibition Pushes Deeper Euro Area Integration

Journal of European Integration

Volumn 35, Issue 3, 2013, Pages 223-237

  Yiangou, Jonathan ^a   O'keeffe, Mícheál ^a   Glöckler, Gabriel ^a  

^a EUROPEAN CENTRAL BANK   (Germany)

Author keywords

ECB; Economic Governance; EMU

Indexed keywords

EID: 84876314998     PISSN: 07036337     EISSN: 14772280     Source Type: Journal    
DOI: 10.1080/07036337.2013.774786     Document Type: Article

References (47)

1. Angeloni, C., and G.B. Wolff. 2012. Are banks affected by their holdings of government debt?, Bruegel Working Paper 2012/07, March.
2. Beechey, M., D. Gruen, and J. Vickery. 2000. The efficient market hypothesis: a survey, Reserve Bank of Australia Research Discussion Paper 2000-01.
3. Bindseil, U., and P.J. Konig. 2011. The economics of TARGET2 balances. SFB 649 Discussion Paper 2011=035.
4. Bini Smaghi, L. 2010. ECON Committee Hearing on 'Improving the economic governance and stability framework of the Union, in particular in the euro area', 15 September, http://www.ecb.europa.eu/press/key/date/2010/html/sp100915.en.html (accessed 26 March 2012).
5. Bini Smaghi, L. 2011. European democracies and decision-making in times of crisis. Speech at the Hellenic Foundation for European and Foreign Policy, Eighth European Seminar 2001, Adjusting to the Crisis Policy Choices and Politics in Europe, Poros, 8 July, http://www.bis.org/review/r110712c.pdf (accessed 27 March 2012).
6. Buiter, W., Corsetti, G. and Roubini, N. 1993. Excessive deficits: sense and nonsense in the Treaty of Maastricht. Economic Policy, 8 (16): 57-100.
7. Capoccia, G., and D.R. Kelemen. 2007. The study of critical junctures: theory, narrative, and counterfactuals in historical institutionalism. World Politics, April: 341-69.
8. Constâncio, V. 2011. Contagion and the European debt crisis. Keynote lecture at the Bocconi University/IntesaSanpaolo conference on 'Bank competitiveness in the post-crisis world', 10 October.
9. De Grauwe, P. 2006. What have we learnt about monetary integration since the Maastricht Treaty. Journal of Common Market Studies, 44 (4): 711-730.
10. De Grauwe, P. 2011. The governance of a fragile eurozone, CEPS Working Document No. 346, May.
11. Delors, J. 1989. Report on economic and monetary union in the European Community. Presented April 17, by the Committee for the Study of Economic and Monetary Union, EU Commission Working Document.
12. Dyson, K. and Featherstone, K. 1999. The road to Maastricht: negotiating economic and monetary union, Oxford: Oxford University Press.
13. European Central Bank (ECB). 2006. Fiscal policies and financial markets. ECB Monthly Bulletin, February, 71-84.
14. European Central Bank (ECB). 2008. Ten years of the stability and growth pact. ECB Monthly Bulletin, October, 53-65.
15. European Central Bank (ECB). 2012a. Monetary and fiscal policy interactions in a monetary union. ECB Monthly Bulletin, July, 51-64.
16. European Central Bank (ECB). 2012b. Compliance of outright monetary transactions with the prohibition of monetary financiering. ECB Monthly Bulletin, October, 7-10.
17. Fearon, J.D. 1991. Counterfactuals and hypothesis testing in political science. World Politics, 43 (2): 169-195.
18. Gennaioli, N., A. Shleifer, and R.W. Vishney. 2010. Neglected risks, financial innovation and financial fragility. NBER Working Paper, Working Paper 16068.
19. Giavazzi, F. and Pagano, M. 1988. The advantage of tying one's hands: EMS discipline and central bank credibility. European Economic Review, 32 (5): 1055-1082.
20. Herdegen, M.J. 1998. Price stability and budgetary restraints in the economic and monetary union: the law as guardian of economic wisdom. Common Market Law Review, 35 (1): 9-32.
21. International Monetary Fund (IMF). 2010. Global financial stability report: sovereigns, funding, and systemic liquidity, World Economic and Financial Surveys, October 2010
22. ING (2011), EMU Break-Up: Pay Now, Pay Later, Financial Markets Research, Global Economics, 1 December 2011.
23. Kydland, F.E. and Prescott, E.C. 1977. Rules rather than discretion: the inconsistency of optimal plans. Journal of Political Economy, 85 (3): 473-492.
24. Krugman, P. 2011. Incredible Europeans. New York Times, 19 November 2011, http://krugman.blogs.nytimes.com/2011/11/19/incredible-europeans (accessed 26 March 2012).
25. Mahoney, J. and Thelen, K. 2010. Explaining institutional change, ambiguity, agency and power, Cambridge: Cambridge University Press.
26. McNamara, K.R. 1998. The currency of ideas: monetary politics in the European Union, New York: Cornell University Press.
27. Merler, S., and J. Pisani-Ferry. 2012. Who's afraid of sovereign bonds. Bruegel Policy Contribution, Issue 2012/02, February.
28. Münchau, W. 2011. Eurobonds and fiscal union are the only way out. Financial Times, 18 September, http://www.ft.com/intl/cms/s/0/9e3d5db2-dfca-11e0-b1db-00144feabdc0.html#axzz1qEGqn3Kb (accessed 26 March 2012).
29. North, D.C. 1990. Institutions, institutional change, and economic performance, New York: Cambridge University Press.
30. Pierson, P. 1996. The path to European integration: a historical institutionalist analysis. Comparative Political Studies 29: 123. Volume 29, No. 2, April 1996, pp. 123-163.
31. Pierson, P. 2000. Increasing returns, path dependence, and the study of politics. The American Political Science Review, 94 (2): 251-267.
32. Pierson, P. 2004. Politics in time: history, institutions, and social analysis, Princeton, NJ: Princeton University Press.
33. Pisani-Ferry, J. 2012. The Euro crisis and the new impossible trinity. Bruegel Policy Contribution, Issue 2012/01, January.
34. Roubini, N. 2011. The Eurozone heads for a break up. Financial Times, 13 June, http://blogs.ft.com/the-a-list/2011/06/13/the-eurozone-heads-for-break-up/#axzz1qEDfLMdl (accessed 26 March 2013).
35. Salines, M., G. Glöckler, and Z. Truchlewski. 2012. Existential crisis, incremental response: the eurozone's dual institutional evolution 2007-2011. Journal of European Public Policy: 1-17. Volume 19, No.5, June 2012, pp. 665-681.
36. Schelke, W. Forthcoming. Fiscal integration by default. In Beyond the regulatory polity. The European integration of core state powers, ed. Philipp Genschel and M. Jachtenfuchs. Oxford: Oxford University Press. pp. 1-16.
37. Schoenmaker, D. 2011. The financial trilemma. Economic Letters. Volume 111, Issue 1, pp. 57-59.
38. Schuknecht, L. 2005. Stability and growth pact: issues and lessons from political economy. International Economics and Economic Policy2: June 2005, Volume no.2, issue 1 65-89.
39. Stark, J. 2011. http://www.reuters.com/article/2011/11/09/ecb-stark-idUSF9E7H801H20111109.
40. Streeck, W. and Thelen, K. 2005. Beyond continuity: institutional change in advanced political economies, Oxford: Oxford University Press.
41. Sargent, T.J. and Wallace, N. 1981. Some unpleasant monetarist arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review, 5 (3): 1-17.
42. Sinn, H.W., and T. Wollmershäuser. 2011. Target loans, current account balances and capital flows: the ECB's rescue facility, CESifo Working Paper No. 2500, 24 June.
43. Thelen, K. 1999. Historical institutionalism in comparative politics, Annual Review of Political Science 2, no: 369-404.
44. Turner, A. 2011. Debt and deleveraging: Long term and short term challenges, Speech at the Centre for Financial Studies, Frankfurt, 21 November.
45. UBS, (2011), Euro break-up, the consequences, UBS Investments Research, Global Economic Perspectives, 6 September 2011.
46. Weidmann, J. 2011. FT interview transcript, http://www.ft.com/intl/cms/s/0/b3a2d19e-0de4-11e1-9d40-00144feabdc0.html#axzz1q3DHrMIT (accessed 26 March 2012).
47. Wyplosz, C. 2011. They still don't get it. VoxEU, 25 October 2011, http://www.voxeu.org/index.php?q=node/6845 (accessed 27 March 2012).