The central bank’s unauthorized actions, i.e. actions that are not covered at all or at most only marginally by its statutes. – In the slipstream of the turmoil surrounding subprime crisis and leading into a global financial crisis in the summer of 2007, central banks were the only institution that could act quickly and save the global economy from the worst. As a result, central banks and also – some even say especially – the ECB developed a sense of superiority over governments and parliaments. Since 2007, the ECB’s decisions have also gradually had a significant impact on the plans of companies and private households. Objections to this development as a whole or to individual ECB measures are not possible by parliamentary route. Only constitutional courts can review the legality of measures. These courts, however, work very slowly, even in express court orders; in analogy to political delay, one therefore also speaks of judical delay. But even the prohibition of an action – such as the purchase of government bonds from the portfolios of banks in crisis states, which in turn use the central bank money to buy government bonds again, and in this way the central bank can be seen to be carrying out government financing through the back door, which is prohibited by the EU treaties – can no longer reverse the manifold consequences that have occurred. The fact that the ECB’s powers have been further expanded by assigning European banking supervision to the central bank has been perceived with concern by many observers, especially from the academic world. Meanwhile, more than a few politicians seem happy to be relieved of unwelcome decisions. – In principle, it is right to take the supply of money out of the hands of politicians and transfer it to an independent expert body. However, it becomes dangerous when this becomes an institution with supremacy in democratic society. – See fear, perverse, buyouts, central banking, bailout, bazooka, force of existence, blood toll, deficit financing ban, democracy deficit, diet yield, expropriation, cold, European Monetary Union, fundamental error, ECB sin, leadership, verbal, Kaldor Hicks criterion, nuclear option, zero interest rate, outright transactions, monetary, repression, financial, shadow state, transfer, disguised, transfer union, overgovernment, redistribution, central bank-induced, confidence bubble.

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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/

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