Advising the German government and independent expertise on committees
Monetary policymakers’ main task is to maintain price stability. Within this context and based on economic analyses, the Bundesbank also advises other public institutions, in particular the German government. The Bundesbank Act expressly names advising the German government as a Bundesbank task, which should not, however, impinge on the Bank’s independence (sections 12 and 13 of the Bundesbank Act). There are a great many ways in which the German government and the Bundesbank can exchange opinions in this advisory mandate. For instance, the president of the Deutsche Bundesbank takes part in the Federal Cabinet meetings at which the Annual Economic Report and the draft Federal budget are passed. Moreover, representatives of the Bundesbank regularly attend various committees either as experts, eg in committees of the lower house of parliament (Bundestag), or as regular members, eg the Social Advisory Council or the Working Group on Tax Estimates. Additionally, there is a regular exchange of opinions with the German Council of Economic Experts and the economic research institutions. In terms of cooperation at the international level, the Deutsche Bundesbank for instance regularly helps the delegations of the Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) to prepare their reports on Germany.
National committees in which the Deutsche Bundesbank is a regular member or acts as an advisor include
- the Social Advisory Council,
- the Working Group on Tax Estimates,
- the Business Cycle Council,
- the Stability Council Working Group,
- the Committee for Public Sector Credit Issues.