Transfer, disguised (backdoor transfer)

In terms of the ECB’s sin, the subsidization of the budgets of stumbling EMU members, and thus a diversion of purchasing power from the core of the monetary union to its periphery. The central bank lacks any democratic legitimacy for this policy, which was enforced by the southern front in the ECB’s Governing Council. In addition, all transfers carried out in this way so far do not solve the problems in the recipient countries stemming from a lack of competitiveness at all, as has been shown clearly enough in the case of Greece. In fact, there is much to suggest that the purchases will even continue to delay the necessary reforms in the recipient countries. – Central-bank-induced redistribution contradicts the basic idea of the European Treaties, causes a strong loss of confidence in the ECB and fuels distrust in all European institutions and, as a result, in European unification among the population (“Europe – not like this!”). – See Exaggeration, central bank, Purchases, central bank, Bail-out, Balance sheet adjustment, Internal flexibility, Blame game, Buyer of last resort, Covered bonds, Credit default swap linkages, Deficit financing ban, Democracy deficit, European Monetary Union, Fundamental Error, Italian Method, DeficitFinancing Prohibition, One-Vote Principle, Blackmail Potential, Euro-Bonds, Financial Solidarity, Greek Crisis, Japanization, KindergartenArgument, Credit, Titrated, Monetarists, moral hazard, perpetual, Plan C, renationalization, monetary, bailout, representation problem, risk takers, final, junk securities, debt club, seven percent limit, salami tactics, government bond interest rate cap, central bank-influenced, government debt repatriation, Stability and Growth Pact, fundamental error, southern front, transfer union, supergovernment, redistribution, central bank-influenced, wealth tax, monetary union 2, path inflation, central bank credit, public. – Cf. ECB Monthly Bulletin of October 2012, pp. 7 ff. (argumentatively questionable defense of the ECB’s operations as a buyer of last resort), Deutsche Bundesbank Monthly Bulletin of October 2012, pp. 27 f. (a central bank must not assume a “quasi-fiscal role”).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/