Central Banks in the Age of the Euro : Europeanization, Convergence, and Power

Both studies of political power and Europeanization studies have tended to neglect central banks. As the age of the euro reaches its 10th anniversary, it is timely to reflect on what it means for central banks, which have been at the forefront of the establishment of Economic and Monetary Union in the European Union. Central banks have been caught up in a major historic political project. What does it mean for them? What does the age of the euro tell us about the power of central banks, their Europeanization and whether they are coming to resemble each other more closely? This book brings together a range of recognized academic specialists to examine the main political aspects of this question. How, and in what ways, has the euro Europeanized central banks (members and non-members of the Euro Area)? What have been its effects on the power of central banks and their use of power? Has the euro generated convergence or divergence in central banking? The book offers the first, in-depth and systematic political analysis of central banks in the first decade of the euro. It places the euro in its global and European contexts, including the US Fed and the Australasian central banks, patterns of differentiated integration in European central banking, and the European Central Bank. It offers a set of case studies of its effects on a representative sample of EU central banks (euro 'insiders' and 'outsiders') and looks at four main thematic areas (monetary policy, financial market supervision, accountability and transparency, and research). The book contributes to Europeanization studies, comparative political economy, and studies of Economic and Monetary Union. It will be of major interest to students of the European Union and European integration, comparative European politics, and area and 'country' studies. More generally, it will interest all those interested in central banking and their pivotal and problematic position between politics and markets. Contents......Page 10 List of Figures......Page 12 List of Tables......Page 14 Abbreviations......Page 16 Notes on Contributors......Page 20 1. The Age of the Euro: A Structural Break? Europeanization, Convergence, and Power in Central Banking......Page 24 Part I: The Changing Context of Central Banking......Page 74 2. Differentiation in the European System of Central Banks: Circles, Core, and Directoire......Page 76 3. The European Central Bank: The Bank That Rules Europe?......Page 96 Part II: Eurosystem ‘Insider’ Central Banks......Page 112 4. National Banks of Belgium and the Netherlands: Happy with the Euro......Page 114 5. Bank of France: The Challenge of Escaping Politicization......Page 134 6. German Bundesbank: Europeanization and the Paradoxes of Power......Page 154 7. Bank of Greece: Latecomer, Uphill Adjustment......Page 184 8. The Banca d’Italia: Between Europeanization and Globalization......Page 206 Part III: ‘Temporary’ Outsiders: Pace Setters and Laggards......Page 224 9. Estonia, Hungary, and Slovenia: Banking on Identity......Page 226 10. Czech Republic and Poland: The Limits of Europeanization......Page 244 Part IV: ‘Semi-Permanent’ Outsiders......Page 262 11. Bank of England: Learning to Live with the Euro......Page 264 12. Denmark and Sweden: Networking by Euro-Outsiders......Page 286 Part V: Lessons from Non-European Central Banks......Page 308 13. The Political Economy of Central Banking in Australia and New Zealand......Page 310 14. The US Federal Reserve and the Politics of Monetary and Financial Regulatory Policies......Page 330 Part VI: Convergence and Divergence......Page 358 15. Financial Supervision: Internationalization, Europeanization, and Power......Page 360 16. Monetary Policy Strategies......Page 378 17. Scientization of Central Banking: The Politics of A-Politicization......Page 396 18. Transparency and Accountability......Page 414 References......Page 430 A......Page 458 B......Page 459 C......Page 461 D......Page 463 E......Page 464 F......Page 467 J......Page 468 M......Page 469 P......Page 470 R......Page 471 S......Page 472 U......Page 473 Z......Page 474 1. Age of the Euro: A Structural Break? Europeanization, Convergence, and Power in Central Banking / Kenneth Dyson Pt. I. Changing Context of Central Banking 2. Differentiation in the European System of Central Banks: Circles, Core, and Directoire / Gaby Umbach and Wolfgang Wessels 3. European Central Bank: The Bank That Rules Europe? / David Howarth Pt. II. Eurosystem 'Insider' Central Banks 4. National Banks of Belgium and the Netherlands: Happy with the Euro / Ivo Maes and Amy Verdun 5. Bank of France: The Challenge of Escaping Politicization / David Howarth 6. German Bundesbank: Europeanization and the Paradoxes of Power / Kenneth Dyson 7. Bank of Greece: Latecomer, Uphill Adjustment / George Pagoulatos 8. Banca d'Italia: Between Europeanization and Globalization / Lucia Quaglia Pt. III. 'Temporary' Outsiders: Pace Setters and Laggards 9. Estonia, Hungary, and Slovenia: Banking on Identity / Bela Greskovits 10. Czech Republic and Poland: The Limits of Europeanization / Rachel Epstein and Juliet Johnson Pt. IV. 'Semi-Permanent' Outsiders 11. Bank of England: Learning to Live with the Euro / Charles Goodhart 12. Denmark and Sweden: Networking by Euro-Outsiders / Martin Marcussen Pt. V. Lessons from Non-European Central Banks 13. Political Economy of Central Banking in Australia and New Zealand / Chris Eichbaum 14. US Federal Reserve and the Politics of Monetary and Financial Regulatory Policies / John T. Woolley Pt. VI. Convergence and Divergence 15. Financial Supervision: Internationalization, Europeanization, and Power / Michael Moran and Huw Macartney 16. Monetary Policy Strategies / Iain Begg 17. Scientization of Central Banking: The Politics of A-Politicization / Martin Marcussen 18. Transparency and Accountability / Nicolas Jabko. The Age Of The Euro Has Cast Central Banks In A Newly Prominent Role In European Integration And In Macro-economic Policy Making In Europe. This Text Examines The Effects Of The Euro As The New European Single Currency On The Central Banks Of The Member States Of The European Union.