By Mervyn King, Executive Director and the Chief Economist of Bank of England
Mervyn King, Executive Director and the Bank's Chief Economist, describes the historical links, the similarities and some of the differences between the Bundesbank and the Bank of England.
He concludes that the principal aim of any central bank is to eliminate macroeconomic instability which, though not always straightforward, is a necessary condition for economic success. Mr King argues that it IS this shared commitment to stability which provides the real basis for European monetary co-operation. The differences of form, structure and organisation are secondary to the fundamental intellectual conviction that good governance of the economy goes hand in hand with price stability.