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The Resource Excess reserves in the Euroystem : an economic and legal analysis, (electronic resource)

Excess reserves in the Euroystem : an economic and legal analysis, (electronic resource)

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Summary
Estimates suggest that international reserves of the Eurosystem could be reduced by one third to half ($130-$170 bill.) of its existing level after the introduction of the Euro. While the ultimate decision, whether and how to use these excessive reserves (public debt repayment, financing of a fund, financing of a tax cut) is a political one, some general results can be stated: First, since reserves earn interest revenue, a large part of which is transferred to the government anyway, moderate (but still positive) economic gains can be expected from a reserve reduction. Second, reserve reductions exceeding a certain threshold require the ECB's approval, which could, however, only be rejected if the envisaged measures were inconsistent with the ECB's monetary and exchange rate policy. Given that unintended macroeconomic effects can easily be avoided by a carefully planned and coordinated reserve reduction, such a rejection by the ECB - which is subject to the review by the European Court of Justice - is only hard to justify. Equally important from a legal point of view is that reserve reductions, effected as transfer of an extraordinary gain to the government, do not constitute monetary financing as prohibited under Art. 101 EC Treaty. Finally, reducing reserves to an adequate level would also eliminate incompatibilities and conflicts of interest between monetary and investment policy by the central banks and reduce their field of operation to their core task: the conduct of monetary policy. Thus, a carefully planned and coordinated reserve reduction can be supported from both an economic as well as legal point of view
Language
eng
Work
Instance
Label
Excess reserves in the Euroystem : an economic and legal analysis
Title
Excess reserves in the Euroystem
Title remainder
an economic and legal analysis
Creator
Contributor
Language
eng
Summary
Estimates suggest that international reserves of the Eurosystem could be reduced by one third to half ($130-$170 bill.) of its existing level after the introduction of the Euro. While the ultimate decision, whether and how to use these excessive reserves (public debt repayment, financing of a fund, financing of a tax cut) is a political one, some general results can be stated: First, since reserves earn interest revenue, a large part of which is transferred to the government anyway, moderate (but still positive) economic gains can be expected from a reserve reduction. Second, reserve reductions exceeding a certain threshold require the ECB's approval, which could, however, only be rejected if the envisaged measures were inconsistent with the ECB's monetary and exchange rate policy. Given that unintended macroeconomic effects can easily be avoided by a carefully planned and coordinated reserve reduction, such a rejection by the ECB - which is subject to the review by the European Court of Justice - is only hard to justify. Equally important from a legal point of view is that reserve reductions, effected as transfer of an extraordinary gain to the government, do not constitute monetary financing as prohibited under Art. 101 EC Treaty. Finally, reducing reserves to an adequate level would also eliminate incompatibilities and conflicts of interest between monetary and investment policy by the central banks and reduce their field of operation to their core task: the conduct of monetary policy. Thus, a carefully planned and coordinated reserve reduction can be supported from both an economic as well as legal point of view
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Cataloging source
IT-FiEUI
http://library.link/vocab/creatorDate
1974-
http://library.link/vocab/creatorName
Badinger, Harald
Index
no index present
Literary form
non fiction
Nature of contents
dictionaries
http://library.link/vocab/relatedWorkOrContributorName
  • Dutzler, Barbara
  • Wirtschaftsuniversität Wien
Series statement
EI working papers
Series volume
44
Label
Excess reserves in the Euroystem : an economic and legal analysis, (electronic resource)
Link
http://epub.wu.ac.at/cgi/search/simple?q=ei+working+papers&_action_search=Search&_order=bytitle&basic_srchtype=ALL&_satisfyall=ALL
Instantiates
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier.
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent.
Control code
FIEb16956588
Extent
95 pages.
Form of item
electronic
Media category
computer
Media MARC source
rdamedia.
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)1088492560
Label
Excess reserves in the Euroystem : an economic and legal analysis, (electronic resource)
Link
http://epub.wu.ac.at/cgi/search/simple?q=ei+working+papers&_action_search=Search&_order=bytitle&basic_srchtype=ALL&_satisfyall=ALL
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier.
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent.
Control code
FIEb16956588
Extent
95 pages.
Form of item
electronic
Media category
computer
Media MARC source
rdamedia.
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)1088492560

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