Wirtschaftspolitik im Wandel

Otmar Issing

Central Banks – from Overburdening to Decline?

Original Publication: SAFE Policy Center, White Paper Series No 42, Frankfurt 2016.

1The fundament of credibility

2Institutional Overburdening

3The ECB – a special case

4Concluding remarks

1The fundament of credibility

Over decades, if not centuries, the reputation of central banks has been rather volatile. As a global phenomenon, it reached a peak before and around the turn of the century. The Bundesbank has been exceptional as this institution had developed its high prestige already at a much earlier stage. As “guardian” of the DM, the Bundesbank (and its predecessor the “Bank deutscher Länder”) has delivered a stable currency to the German people who had lost their (nominal) wealth ...