This thesis aims at researching the recent history of the EMU and the monetary policy shift of the ECB in addition to its presidents roles in shaping the economy. This thesis will provide background information on the economic constitution of the EMU and how it has transformed over the course of Euro crisis and the years after. Additionally, the monetary policy actions of the ECB amongst Euro crisis and the COVID-19 pandemic will be studied.
I argue that by transitioning to an expansionary monetary policy earlier than originally happened, some of the more severe economic impacts of the Euro crisis could have been prevented and it would not have led to a lost decade for the growth of the Eurozone. Additionally, I argue that the central bankers' implications for molding our future is enormous as it is clear that market actors react to their statements. My research questions are as follows: What problems or flaws have been identified within the EMU and how could they be improved? What are the presidents’ implications and effects on influencing the economy? Furthermore, how has the shift of the ECB monetary policy from hawks to doves happened over the years?
This thesis utilizes critical discourse analysis in researching the materials, which comprise of the presidents annual hearings before the Plenary of the European Parliament, with the exclusion of the last nominated president as she has only been through one. In her case, quarterly Economic and Monetary Committee hearings will be utilized.
The key findings suggest that the ECB presidents have viewed the EMU flawed and have emphasized the completion of the union as too much responsibility has been left for the ECB. The call for more fiscal capacity is repetitive for all three presidents. Furthermore, this research also suggests that the shift from hawks to doves happened because no other way was seen. Additionally, the roles of central bankers have been heightened during the recent history and it shows that they have a great influence on the economy based on the reactions by the market actors and the public.
