Abstract
The member countries of the European Community (EC) have established a process for moving toward a common monetary policy conducted by a single European Central Bank (ECB). The structure of this new policy institution, modeled after the German Bundesbank, has been specifically designed to guarantee it a high degree of independence from political influences. Empirical evidence linking independent central banks with low average inflation played an important role in giving impetus to the creation of a common central bank with substantial political independence.2
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Walsh, C.E. (1995). Central Bank Independence and the Short-Run Output-Inflation Trade-off in the European Community. In: Eichengreen, B., Frieden, J., von Hagen, J. (eds) Monetary and Fiscal Policy in an Integrated Europe. European and Transatlantic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-79817-7_2
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