Is Asking Questions Free of Charge? Questioning the Value of Independent Central Banks through the Lens of a European Credit Council

Abstract

This discussion of Eric Monnet's idea of a European Credit Council evaluates the likely consequences of such a new institution. Based on a critical examination of the notion of economic expertise, it warns that such a council might legitimate an untenable status quo, while bringing little positive benefits. Such a council could however exercise a subversive role if its counterexpertise were to expose the limits to central bank independence in the context of the climate crisis, thus undermining the current set-up. Yet to play such a role would require a degree of confrontation which is unlikely to emerge from the council's envisioned setup.