Lobbyists are often mistrusted. Special interest groups use them to influence politicians.
However, what’s the alternative? Policy makers cannot know everything. They need input from industry and non-profit groups. Through personal contacts with officials and by publishing articles, lobbyists can get new ideas on the agenda.
Take the responsibility of central banks in the green transition to phase out carbon-based fuels.
Several speakers noted that it is important for central banks to communicate with society, not only with the financial sector.
One of the people in the audience remarked that it is not enough that the ECB explains what it is doing. It also needs to respond to the needs of society.
The representative of the ECB replied that his institution has become more transparent in response to feedback from the public. For example, the meeting notes of its board are published.
However, this is a classic case of bike-shedding. Publishing notes is a trivial gesture. The real problems in the euro area are massive unemployment in the southern countries and the poor performance of the European economies compared to the US. A genuinely responsive central bank should do much more to support the well-being of Europe’s citizens.
So I agree, it is time to rethink the ECB. Let’s break some political taboos and rev up the engines.
Economists are fond of analogies to describe technical ideas.
Most of those analogies are confusing and/or useless. As I wrote in the introduction of Bankers are people, too:
Economists and journalists writing for lay audiences tend to use metaphors when explaining financial concepts. For example: ‘Cheap credit is like heroin. It’s addictive, and the economy can overdose from it.’ That may sound nice, but what does it even mean?
Gisterenmiddag (26 juni) organiseerde Leergeld haar tweede evenement in Brussel. Leergeld, een initiatief van Europarlementslid Sander Loones (N-VA), wil mensen bewust maken van de impact van de Europese Centrale Bank (ECB) op hun financiën.
The launch of the report was accompanied by a symposium in Brussels on Tuesday. During an interesting panel discussion, it was debated how the ECB can improve the way it works. Carl Dolan and Leo Hoffmann-Axthelm from Transparency International EU stressed that the ECB had cooperated with the NGO.
Many topics were covered during the discussion. For example the status of whistleblowers, freedom of information requests, and the “cool-off period” demanded when ECB executives move to the private sector.