The Delegation Mandate of the European Central Bank during the Euro-Crisis

Inhaltsverzeichnis (Table of Contents)

• Introduction
• The Principal-Agent Approach
• The European Central Bank
• The Outright Monetary Transactions Program
• The Debate from a Principal-Agent Perspective
  • The Preferences of the Agent - ECB
  • The Preferences of the Principals - Member States of the Eurozone
  • Did the ECB Exceed Its Mandate by Announcing the OMTS Program?
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to analyze the European Central Bank's (ECB) bond-buying program, Outright Monetary Transactions (OMTs), from a principal-agent perspective. The study seeks to determine whether the ECB exceeded its mandate by announcing this program in the context of the Euro-crisis. Key themes explored in the paper include:

• The principal-agent framework in EU institutions
• The ECB's mandate and its autonomy
• The preferences of the ECB and the Eurozone member states
• The potential conflict of interest between the ECB and its principals
• The impact of the OMTs program on the Eurozone crisis

Zusammenfassung der Kapitel (Chapter Summaries)

The paper begins with an introduction outlining the context of the Euro-crisis and the research question. It then provides an overview of the principal-agent approach, a framework used to analyze the relationship between actors with different preferences and interests. The following chapter explores the ECB as an institution, examining its mandate and its level of autonomy. The focus is on identifying potential gaps in the ECB's policy-making authority that might have allowed for the implementation of the OMTs program. The third chapter outlines the technical features of the OMTs program, analyzing whether the bond-buying program aligns with the ECB's mandate. This analysis considers the potential conflicts of interest arising from the ECB's actions. The fourth chapter focuses on the debate surrounding the OMTs program from a principal-agent perspective. It investigates the preferences of the ECB (the agent) and the Eurozone member states (the principals) in relation to the Euro-crisis and the OMTs program.

Schlüsselwörter (Keywords)

This paper focuses on the European Central Bank (ECB), its mandate, and the principal-agent framework. Key topics include the Euro-crisis, the Outright Monetary Transactions (OMTs) program, the preferences of the ECB and the Eurozone member states, and the potential conflict of interest arising from the ECB's actions.