For one thing, we have to assume – more so today than in the early nineties – that the euro area will be determined by nation states for a long time to come. Without a central European decision-making process that is free from thinking in terms of nation states, a political central bank would be apt to generate severe conflicts between the participating countries.
For another, the financial markets have become even more emancipated since 1991. Credibility has become even more important. And building up confidence in the currency on the part of citizens and financial markets is without any doubt one of the great strengths of an independent central bank – but only, of course, if it pursues the right policies.