【Abstract】

Europe embarked on the Economic and Monetary Union 25 years ago without sufficiently safeguarding some of the essential conditions that must be met to run a monetary union smoothly. The consequences of this omission came to light during the many and unprecedented crises that have shaped the European Central Bank. This article analyses and critically discusses the changing interpretation of the objective of price stability and the use of non-conventional policy instruments to realize this objective. Furthermore, the author analyses the problems with the monetary transmission within the eurozone and the framework for financial stability and supervision.

【Keywords】

Conventional and unconventional monetary policy, Economic and Monetary Union, European Central Bank, Bank supervision, Financial stability

【Authors】

Nout Wellink, former Governor of the Dutch Central Bank and former member of the Governing Council of the European Central Bank