Regionalism and Global Economic Integration: Europe, Asia, and the Americas

By William D. Coleman; Geoffrey R. D. Underhill | Go to book overview

9

Strapped to the mast

EU central bankers between global financial markets and regional integration

Kenneth Dyson,Kevin FeatherstoneandGeorge Michalopoulos

Since the early 1980s, national central banks in Europe have been operating within a dramatically changing environment. First, there has been a process of globalization of financial markets. Financial innovation and liberalization of capital movements, especially under the auspices of the Single European Act, have led to the internationalization of financial markets, thereby altering the systemic relationships that govern monetary policy-making. Foreign exchange market turbulence in the 1980s and early 1990s clearly demonstrates the enhanced power of major financial market actors, illuminates the more powerful constraints on state economic policies and suggests evidence of a crisis of effectiveness of traditional monetary and exchange rate policy instruments. Second, within Europe, the relaunch of Economic and Monetary Union (EMU) in the late 1980s represented a major political challenge to the power of national central banks. It added a second source of uncertainty and potential instability to their operating environment.

In this context of dual assaults from global market contingencies and regional political pressures, central bankers have sought to ‘strap themselves to the mast’, in the manner of Odysseus, by adhering to a professional ideology of central bank independence. That ideology rested on a professional dedication to the value of price stability, and to the belief that commitment to price stability could only be made credible if central banks were made independent in their use of monetary policy instruments.

This chapter analyses the impact of the European Union (EU) central banking community in the regional process of Economic and Monetary Union negotiations through the signing of the Maastricht Treaty. It highlights the ability of central banks to secure their corporate interests through their participation in the making of EMU. The design of the final stage of EMU was almost exclusively negotiated within the world of central banks. Price stability has become the primary target of EMU, while political and economic independence of the ‘new’ EU monetary institutions, the European Central Bank (ECB) and the European System of Central Banks (ESCB), has been ensured. We argue that by promoting independence, central bankers were attempting to limit the loss of power they suffered because of globalized financial markets and the regional process of EMU.

-174-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Regionalism and Global Economic Integration: Europe, Asia, and the Americas
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 254

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.