Germany’s Constitutional Court Ruling & the Myth of Central Bank Independence | Adam Tooze

Hidden Forces

In Episode 138 of Hidden Forces, Demetri Kofinas speaks with Adam Tooze, professor of history and Director of the European Institute at Columbia University about the German Constitutional Court’s recent ruling. In its decision, the German Court finds that the European Central Bank’s 2015 bond-buying program would be illegal under German law unless the ECB can prove the purchases are justified. The ruling threatens to undermine the very credibility of Central Bank independence, which has always been predicated on a political consensus about what the proper role of monetary policy is, how it should operate, and what its objectives should be.

This consensus no longer holds, not only in Europe but across much of the developed world. Left unresolved, the contradictions between the mandates of central banks and their policy actions will only worsen the type of political dysfunction that threatens the very independence that they seek to protect.

For Hidden Forces premium subscribers, this week’s hour-long episode overtime looks at how our collective response to the COVID-19 pandemic may say more about our own fear of death and disease than about the actual dangers posed by the virus. By calling into question our mastery over life and death the disease shakes the psychological basis of our social and economic order. It poses fundamental questions about priorities; it upends the terms of debate. It’s a conversation about history, philosophy, and the benefits and consequences of human progress.

You can access the episode overtime, as well as the transcript and rundown to this week’s episode through the Hidden Forces Patreon Page. All subscribers gain access to our overtime feed, which can be easily added to your favorite podcast application.

Producer & Host: Demetri Kofinas

Editor & Engineer: Stylianos Nicolaou

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