delay of political decision-making

With regard to the financial market, this refers to – the system conflict (a state of tension between incompatible and, therefore, hardly to combine appropriately targets) between – financial markets that revalue every second and – politically driven economic changes that usually drag on for many years; – the slowness in the actions of governments and parliaments in a democratically constituted state on the one hand and the central bank on the other. As the subprime crisis and the subsequent financial crisis in particular have shown on occasion, the central bank is the only institution capable of acting quickly in an emergency situation (a critical, problematic, or striking set of circumstances that happens unexpectedly in the financial market and demands immediate action). – This fact has given the ECB in particular a pre-eminent position among the European institutions, of which the central bankers in Frankfurt are well aware. On the other hand, it has also led to distrust of the ECB’s supremacy and, with the transfer of European banking supervision to the ECB in 2014, even to audible criticism of the power of the central bank, which is not subject to parliamentary control. – See presumption, central banking, democratic deficit, policy clamp, system conflict, financial market conflict.

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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/