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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.

On paper, the European Central Bank enjoys full independence. Its board members cannot be revoked and their long eight-year mandate cannot be renewed. So they do not have to please member governments. Yet they reluctantly violated the no-bailout clause to please member governments.

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,...

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