Thus, monetary policy in the Euro 11 countries has been denationalised and is being conducted by a supranational central bank, which is politically independent of the governments of the Member States. Furthermore, any monetary financing of the public sector or privileged access to financial institutions is prohibited. The separation between public finance and monetary policy is thereby ensured.
This is very much in line with views expressed by Hayek:18 “It may still be true that, if there were full agreement as to what monetary policy ought to aim for, an independent authority fully protected against political pressure and free to decide on the means to be employed in order to achieve the ends it has been assigned might be the best arrangement.