It is inevitable that thecentral bank of the European Central Bank as a central bank in the process ofeconomic and political integration will face some disadvantages in theeffective implementation of monetary policies as compared to the central bankof the US Central Bank, which is not a problem in terms of economic andpolitical integration. The US Central Bank is the Central Bank of a singlecountry. The United States is not a state structure formed by member statessuch as the EU. Hence, the US has the potential to move forward both as aneconomic and as a political goal. But; This is not the case for the ECB. TheECB has only a mission to implement monetary policies in the euro area. Thereare 19 countries in the Eurozone, and each member country has separate economicadministrations. The ECB does not have the function of managing the economiesof these countries.
Therefore, the negativities in the economic management ofthe countries in question will directly affect the euro. This happened in thecase of Greece. The crisis in the Greek economy and the rise of the rhetoricthat we can come out of the eurozone in Greece; the euro has affected thenegative direction and in this case, ithas not been an effective policy set out by the ECB. Similar to the case ofGreece, there is no doubt that the other countries in the euro zone will haveto live in economic administrations; It will lead to negative developments onthe euro as in the case of Greece. The larger size of the event; Even if it isnot located in the euro zone, the EU member will cause negative economicdevelopments in any country and the negative perceptions about the euro and theEU in the international markets.
In addition, the recent election of theelected government in Great Britain calls for a referendum on EU membership in2017; It is very important that the people living in the strongest member ofthe EU are dissatisfied with the EU membership. The worst part here is theproblem; the referendum on the EU in the UK will create the risk that the EUwill set an example in terms of the other member states. There is no doubt thatinternational markets will be close followers of this situation.
All thesedevelopments; undoubtedly pose asignificant trust problem against the euro, which is in the official currencyposition of the EU as well as the EU. The ECB does not have an effective rolein the management of member economies; and the absence of sanction in the faceof possible negative EU membership referendum in the UK; It creates significantproblems in the effectiveness of the monetary policies that the ECB monitors.Karel Lannoo gave a great and reasonable brief about this comparison in hisarticle by stating that on the institutional side, the EU and U.S. seem to be moving in differentdirections, with (most likely) reduced powers for the Fed in the U.S.
, and morefor the ECB in Europe. On the regulatory side, where the EU was in lead, both blocshave recently started to converge, largely as a result of initiatives in the U.S. Congress. Hence, evenif institutional responses differ, regulatory responses can be further aligned (Lannoo, 2014).It is undeniable that the effectiveness ofmonetary policies implemented by the Central Bank of the United States, whichis the central bank of a single state and which is not in a position to dealwith the negativities faced by the ECB, is much more effective than the ECBpolicies. The biggest obstacle to the EU’s ability to act as a single force incommon externalities is the convergence of different traditional structures tothe EU integration process of some EU member states. The main objective of theEU’s common foreign and security policy is to establish the identity of the EUin international affairs.
Moreover, despite the common foreign and securitypolicy aimed at facilitating member countries’ exchange of views oninternational political issues, There are different opinions about how the EUwill follow some external policies. If we act in the light of this reality, itis not possible in the near future that a structure similar to the US in theEU, in other words, a structure of theUnited States of Europe, can be established. In this case, it will take a longtime for the AMB to implement a truly stable monetary policy like the UScentral bank.
By determining the final national boundaries in the EU; Until aUS-like structure is established and the EU member states are used as anational currency by the EU, It is inevitable that the EMB will have severedesperation for the implementation of effective monetary policies and effectiveeuro management