Will the ECB carry on bullying governments into doing what it wants?

The central bank sees the merit of the carrot and the stick. Democracy? Not so much.

The European Central Bank announces its next monetary policy decision at 1:30pm today, and here's hoping it's a good one.

The eurozone is by no means fixed, and as Alphaville's Izabella Kaminska points out:

The ECB’s accomodative policy has failed to make an impact due to a broken transmission mechanism. Under its own mandates, this leaves the ECB open to the use of unconventional tactics to get it going again.

What sort of unconventional tactics? Well, the expected plan looks to be to begin primary debt purchases – the ECB will start to buy debt directly from the European Stability Mechanism (the organisation in charge of the eurozone bailouts).

But the really worrying possibility in today's announcement is highlighted by Slate's Matt Yglesias:

Here's Philipp Rösler, Vice-Chancellor of Germany and Economy Minister, offering the clearest account yet of how European monetary policy has gone so far off the rails:

“If you take away the interest rate pressure on individual states, you also take away the pressure for them to reform.”

The view here is that because countries ought to pursue good pro-growth structural policies, central banks ought to create unfavorable monetary conditions as a way of pressuring countries to pursue structural reforms.

Yglesias points out that this tactic makes it impossible to tell which structural reforms have actually worked, but the other massively damaging aspect is what it does to the democratic legitimacy of the Bank. They are using their one tool, not to improve the economy of the eurozone, but to cajole elected governments into doing things they wouldn't do otherwise. It's the sort of thing that makes a person take Nigel Farage seriously.

Protesters camp outside the ECB in Frankfurt in October 2011. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Quiz: Can you identify fake news?

The furore around "fake" news shows no sign of abating. Can you spot what's real and what's not?

Hillary Clinton has spoken out today to warn about the fake news epidemic sweeping the world. Clinton went as far as to say that "lives are at risk" from fake news, the day after Pope Francis compared reading fake news to eating poop. (Side note: with real news like that, who needs the fake stuff?)

The sweeping distrust in fake news has caused some confusion, however, as many are unsure about how to actually tell the reals and the fakes apart. Short from seeing whether the logo will scratch off and asking the man from the market where he got it from, how can you really identify fake news? Take our test to see whether you have all the answers.

 

 

In all seriousness, many claim that identifying fake news is a simple matter of checking the source and disbelieving anything "too good to be true". Unfortunately, however, fake news outlets post real stories too, and real news outlets often slip up and publish the fakes. Use fact-checking websites like Snopes to really get to the bottom of a story, and always do a quick Google before you share anything. 

Amelia Tait is a technology and digital culture writer at the New Statesman.