Designing a Central Bank in a Federal System: The Deutsche Bundesbank 1957-1992.

By Susanne Lohmann
1993| Working Paper No. 1249

This chapter analyzes the political dispute surrounding the 957 replacement of the Bank deutscher Lander by the Deutsche Bundesbank and the 1992 changes to the Bundesbank law necessitated by German unification. The evidence suggests that the federal components of the Bundesbank institution are an important source of its autonomy. Some conclusions are drawn for the institutional design of a European central bank.