I guess that central bank lending rates are set (and money supply managed) by EU people in Brussels? How does that work? Essentially, it's all from HQ in Brussels, but that doesn't mean it's a all the Belgians. It's mostly French an Germans, with input from all the others.
Seems like it might work fine as long as things are good, but if any of the major countries were disproportionately affected by a recession, there could be trouble.
Precisely.
They are least smart enough to let the Bundesbank people take over the central banking, or did they let the French (or, God forbid, the Italians) do it?
I truly do hope so. But I don't trust the Bundesbank in the long run.
I think that the "euro" european central banking is being done from Frankfurt am Main.
Thanks, you have added to my understanding of this stuff. I'm an accountant, not an economist, so the advent of the euro (except for my sentimental respect for the British pound, and before the euro, the German DM) had always seemed to me to be a good idea-- at least until I finished Margaret Thatcher's new book "Statecraft". Highly recommended! I don't pretend to really understand this stuff, but she makes a lot of sense.