Otmar Issing
Otmar Issing | |
|---|---|
| Born | March 27, 1936 Würzburg, Germany |
| Occupation | Economist |
| Known for | Member of the Executive Board of the European Central Bank (1998–2006), Chief Economist of the ECB, president of the Center for Financial Studies |
Otmar Issing (born 27 March 1936 in Würzburg) is a prominent German economist who was a member of the Executive Board of the European Central Bank between 1998 and 2006, simultaneously holding the position of Chief Economist at the ECB. He is credited with formulating the 'two-pillar' framework for monetary policy decision-making that the ECB implemented. Since 2006, Issing has been serving as president of the Center for Financial Studies.
Life
Issing pursued his studies in economics at the University of Würzburg from 1955 to 1960, spending intervals in both London and Paris. Following this, he remained at Würzburg as a research assistant until 1966, obtaining his PhD in 1961 and completing his habilitation in 1965. In 1967, he was appointed director of the Institute for International Economic Relations and became a full professor at the University of Erlangen-Nuremberg. Later, in 1973, he took up the role of Professor of Economics, Monetary Affairs, and International Economic Relations back at Würzburg.
Between 1988 and 1990, Issing was a member of the German Council of Economic Experts. Subsequently, he joined the board of the Deutsche Bundesbank, where he also held a seat on its Central Bank Council. In 1998, he became part of the ECB's executive board as its inaugural Chief Economist, responsible for Economics and Research.
Since June 2006, Issing has headed the Center for Financial Studies at Goethe University Frankfurt. Additionally, from 2007 until 2018, he acted as an international advisor to Goldman Sachs.
In October 2008, Issing chaired a German governmental expert panel known as the "Issing Commission," which issued six reports recommending reforms for global financial markets. That same year, he joined the European Commission’s high-level group on EU financial supervision led by Jacques de Larosière. Later, from 2017 to 2018, he participated in the G20 Eminent Persons Group on Global Financial Governance.
Memberships
Issing has been affiliated with several influential economic institutions such as the Verein für Socialpolitik (German Economic Association), American Economic Association, Akademie der Wissenschaften und der Literatur (Corresponding Member from 1989 to 1991), Academia Scientiarum et Artium Europaea, Walter Eucken Institute, Executive Committee of the Institute for European Affairs (INEA), Euro50 Group, and served on the Advisory Board of the Globalization and Monetary Policy Institute (Federal Reserve Bank of Dallas) until 2016.
Publications
Issing’s scholarly work covers key areas in economic policy with an emphasis on monetary theory, policy frameworks, and international economics.
Significant recent publications include:
- Der Euro in stürmischen Zeiten (Vahlen, 2016), which examines economic and monetary policy developments at the Center for Financial Studies during 2006–2015
- Einführung in die Geldtheorie (15th edition, Munich 2011), also translated into Chinese and Bulgarian
- Der Euro. Geburt – Erfolg – Zukunft (Vahlen, 2008), documenting the origins and progress of the European currency; English edition titled The Birth of the Euro (Cambridge, 2008), with a Chinese translation released in 2010
- Imperfect Knowledge and Monetary Policy co-authored with Vitor Gaspar and others (Cambridge, 2005)
- Monetary Policy in the Euro Area co-authored with Vitor Gaspar et al. (Cambridge, 2001)
- Von der D-Mark zum Euro (Tübingen, 1998)
- Einführung in die Geldpolitik (6th edition, Munich, 1996)
Positions
Issing expressed strong reservations about initiating the European Monetary Union prematurely, given the economic disparities among member states, and warned EU countries against violating the no-bailout rule designed to prevent the transfer of debt obligations.
In October 2016, he pointed out that the Stability and Growth Pact was ineffective, largely due to a lack of market discipline caused by the European Central Bank’s interventions combined with insufficient fiscal governance. He contended that the ECB had "crossed the Rubicon," caught in a difficult balance between its monetary policy duties, banking supervision responsibilities, and its role enforcing Troika mandates. With over one trillion euros invested in bonds acquired at artificially suppressed or negative interest rates, the ECB faced substantial risk of losses if interest rates were to increase. Issing underscored the potential damage to central banks' credibility resulting from such strategies and concluded that the euro initiative was inherently flawed and likely to fail.
Corporate boards
- Advisory Board Member at Deloitte Germany
- Member of the International Advisory Council at Goldman Sachs (since 2006)
Non-profit organizations
- Council for the Future of Europe member at Berggruen Institute
- Member of the European Academy of Sciences and Arts
- Trustee on the board of the Friedrich August von Hayek Foundation
- Chairman of the board of trustees at Gesellschaft für Kapitalmarktforschung
- Chairperson of the board of trustees at House of Finance, Goethe University Frankfurt
- Editorial board member for International Finance
- Trustee board member at Leibniz Institute for Financial Research
- Former member of the International Advisory Council at Bocconi University (until 2015)
Awards
- 1993 – Verdienstkreuz 1. Klasse des Verdienstordens der Bundesrepublik Deutschland
- 2003 – International Prize from Friedrich-August-von-Hayek-Foundation
- 2004 – Bernhard-Harms Medal awarded by the Institute for World Economics, Kiel
- 2005 – Hans-Möller Medal recognizing exceptional contributions in economics
- 2006 – Großes Verdienstkreuz des Verdienstordens der Bundesrepublik Deutschland
- 2006 – Ludwig-Erhard-Preis honoring achievements in economic journalism
- 2006 – Grand Officier de l’Ordre de Mérite du Grand-Duché de Luxembourg
- 2007 – Silver Insignia of Würzburg
- 2011 – Gustav-Stolper Award presented by Verein für Socialpolitik
Honorary degrees
- 1991 – Honorary professorship awarded by University of Würzburg
- 1996 – Honorary doctorate from Faculty of Law and Economic Sciences, University of Bayreuth
- 1998 – Honorary doctorate granted by Faculty of Economic Sciences and Statistics, University of Constance
- 1999 – Honorary doctorate from Faculty of Economic Sciences, Goethe University Frankfurt
- 2007 – Honorary Professor title conferred by Goethe University Frankfurt
- 2010 – Laurea Honoris Causa in International Economic Integration from University of Pavia
- 2016 – Honorary Senator designation from University of Würzburg