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Hidden Blemish in European Law: Judgements on Unconventional Monetary Programmes

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  • Bodo Herzog

    (ESB Business School, Reutlingen University, 72762 Reutlingen, Germany
    RRI—Reutlingen Research Institute.
    IFE—Institute of Finance and Economics.)

Abstract

This article studies the hidden blemishes of two benchmark rulings of the European Court of Justice (ECJ). In 2015 and 2018, the ECJ approved two unconventional monetary instruments, among others ‘Outright Monetary Transactions’ and the ‘Public Sector Purchase Program’. Yet, there is a vigorous debate about both monetary operations in law and economics. In this interdisciplinary article, we address law and economic arguments in order to elucidate insights to the legal community. In particular, we elaborate on the legal implications of a variety of concerning issues such as public policy interference, effect on wealth redistribution, erosion of democratic legitimacy and lack of effectiveness of monetary policy. These topics remain disregarded in the ECJ rulings. Consequently, the verdicts do not identify the economic boundaries of the European Central Bank’s mandate appropriately.

Suggested Citation

  • Bodo Herzog, 2021. "Hidden Blemish in European Law: Judgements on Unconventional Monetary Programmes," Laws, MDPI, vol. 10(2), pages 1-13, March.
    • Handle: RePEc:gam:jlawss:v:10:y:2021:i:2:p:18-:d:523047
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