The differences start with budgeting the feds

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The differences start with budgeting. The Fed’s regional banks receive budget fromthe Board of Governors, while the executive board of European System of Central Banks is funded by the national central banks.In terms of independency, since European System of Central Banks consist of multiple nations, it is more politically independent, but their main goal is always
price stability. On the other hand, The Fed may be under political pressure, but it can decide between low unemployment and low inflation, or both.11.Why might eliminating the central bank’s independence lead to a more pronounced political business cycle?Eliminating the central bank’s independence might make it more shortsighted and subject to political influence. Thus, when political gains could be achieved by expansionary policy before an election, the central bank might be more likely to engage in this activity. As a result, more pronounces political business cycles mightresult.On the other hand the politically insulated central banks is more likely to be concerned with long-run objectives and a defender of a sound dollar and a stable price level.15. I didn’t find the fifteenth question in the book.

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