No. 156 - OMT in Karlsruhe – Awaiting a Verdict

‘Institute for Western Affairs' Bulletin (No.156/2014): Marta Götz, "OMT in Karlsruhe – Awaiting a Verdict".

The decision by Mario Draghi establishing the option to undertake outright monetary transactions (OMT) has fallen under sharp criticism by the majority of German economists. As they contested the legality of such transactions, the matter was brought before the Germany’s Karlsruhe-based Constitutional Court. Originally anticipated in the fall of 2013, the decision was postponed to the early 2014. In the run-up to the ruling by the German court, it is worthwhile overviewing and structuring the main arguments on both sides of the issue.