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Grexit will be the staggering cost of a non-independent central bank

The ECB has become deeply politicised. No other central bank in the world tells its government what reforms it should conduct, nor how sharp fiscal consolidating should be.

Published Tue, Jun 30, 2015 · 09:50 PM

ECB

THE European Central Bank (ECB) has decided to maintain its current level of emergency liquidity to Greece. By refusing to extend additional emergency liquidity, the ECB has decided that Greece must leave the eurozone. This may be a legal necessity or a political judgment call, or both. Anyway, it raises a host of unpleasant questions about the treatment of a member country and about the independence of the central bank.

As anticipated, the negotiations …