The European Central Bank (ECB)

Résumé du document

The Eurosystem includes the national central bank (NCB) and the European central bank (ECB). All states that have central bank in the eurosystem are in the European Union and there are 27 member states. The countries which have not adopted the Euro but that are in the European central bank system are allowed to have an independent monetary policy.

In brief, the European central bank has two main objectives to define the monetary policy of the euro area and to take decision to introduce this currency. The euro area is the world's largest economy after the USA.

It was created in 1998 after many stages that are explained in the first part of this study.

Extraits

[...] It was the first stage of the ECB in 1990. But nowadays its role is more related with the question of interest rates and of control of the monetary policy. It wants to prevent an inflationary growth. So the ECB's goals have evolved over the years even if the primary objectives of 1990 are still practiced by it. b. Cooperation with other institutions In the main cases, the ECB has no double employment with another institution, particularly with the National Central Banks, called NCB. [...]

[...] To respect this inflation level, there are several instruments to vary the supply currency in circulation in the country and the credit charges granted to the private individuals and companies. The principal instrument used is generally the directing rate. This rate determines the price to which the trade banks are refinanced near the central bank. Inflation rate b. To maintain price stability Its second main objective is to maintain price stability. That's why the ECB has adopted a specific strategy to ensure the successful conduct of monetary policy. [...]

[...] Potential ways Introduction The Eurosystem includes the national central bank (NCB) and the European central bank (ECB). All states that have central bank in the eurosystem are in the European Union and there are 27 member states. The countries which have not adopted the Euro but that are in the European central bank system are allowed to have an independent monetary policy. In brief, the European central bank has two main objectives to define the monetary policy of the euro area and to take decision to introduce this currency. [...]

[...] So the European Central Bank is useful, because it enables the country to lead a policy of disinflation and also to fight against an inflationary growth. d. Problems related to the fight against inflation Some economists reproach the ECB that it is not being concerned with economic growth and the unemployment rate of the Member States, but only concentrating on inflation. That's the reason why they propose to include a policy favourable to employment in the European Union in the ECB's objectives. [...]

[...] Back row (left to right): Zsigmond Jarai (President, Magyar Nemzeti Bank), Ivan Sramko (Governor, Narodna banka Slovenska), Nils Bernstein (Governor, Danmarks Nationalbank), Zdenek Tuma (Governor, Ceska narodni banka), Nicholas C. Garganas (Governor, Bank of Greece), Guy Quaden (Governor, Nationale Bank van Belgie/Banque Nationale de Belgique), Stefan Ingves (Governor, Sveriges Riksbank), Mario Draghi (Governor, Banca d'Italia), Reinoldijus Sarkinas (Chairman of the Board, Lietuvos bankas), Leszek Balcerowicz (succeeded by Sławomir Skrzypek, President, Narodowy Bank Polski), Mugur Isarescu (Governor, Banca Nationala a Romaniei). N.B. Mervyn King (Governor, Bank of England) was not present for the photograph. III. The main objectives a. [...]