Question

Go to https://www.ecb.europa.eu/ecb/orga/escb/ html/index.en.html. Click on “Organization” and choose “Independence.” What is the main argument used to defend the ECB’s political independence?

Short answer

The main argument used to Support ECB’s political independence is that it is important to maintain price stability.

Step-by-step solution

Step 1. Introduction

European Central Bank is considered to be the central bank for the eurozone which is a group of countries exactly to be 19 countries that have a common currency that is Euro.

Step 2. Explanation 

European Central Bank or ECB enjoys a significant degree of political independence. ECB, NCBs, or its members are not required to take instructions from governments of EU members, institutions, or other bodies. On the other hand, these institutions, bodies, and member governments are expected to follow this principle.

It has been mentioned that both empirical evidence, as well as theoretical analysis, support the argument the political independence of the European Central Bank is important to maintain price stability.