This 7 page paper is proposal and methodology for a case study comparing the performance of the European Central Bank and the Bundesbank looking at their results and examining the policies, processes and accountability. The methodology includes the use of secondary sources and primary data collection using interviews. The bibliography cites 30 sources.
the Euro as their currency, the European Central Bank (ECB) is the central bank responsible for setting the monetary policy on which the respective economies will rely. This is
a huge responsibility for the ECB, and one that is likely to increase. On May 1st 2004 a further ten countries joined the EU, increasing membership to twenty five, many
of these countries have already expressed an interest in joining the single currency as soon as possible, with 2007 generally seen s the earliest likely date for these new
EU members to join the Eurozone (Van Arnum, 2004). The laying done of economic criteria has helped ensure stability to ease the difficulties that are faced by the ECB
when managing such a broad and diverse economy. The need to manage interest rates to promote growth is all areas without creating economic shock and allowing for the control of
inflation is difficult especially in an environment where the confidence of the public and markets are of such influence. In the past, the Bundesbank has proven to be a
well managed central bank, able to manage the German economy, guiding it through difficult times (Kole, 1995, Uwe, 1994). The bank was also well respected and other countries would often
emulate the polices and actions of the bank to improve their own economies though the policies and also the increased trust that similar policies may engender (DeHann, 2003, Frowen, 1998).
It is argued that these are lessons that the ECB should have learnt, although a new bank, it has the knowledge and experience of the Bundesbank, which is now
simply a department within the ECB (De Haan, 2000). If the ECB is able to draw on this knowledge as well as the knowledge from many other members of the