What is the European Central Bank?

The European Central Bank is the main banking group responsible for monetary policy for the European currency or euro unit. The European Central Bank, founded in 1998, has many functions, but has primarily maintaining price stability in the currency of the Member Nations. Since 2010, the European Central Bank has had 16 member countries relying on their policies.

Now one of the main banking systems in the modern world has grown from previous institutions, such as the European Monetary Institute and the former European Cooperative Fund. The ECB was the result of the Masstricht Treaty, called the European Union Treaty, which paved the way for the creation of the European Union and the implementation of a single currency for the Member Nations. The ECB policy is known together as the euro area.

Unlike other central banks that have a number of same tasks, the European Central Bank specifically Single is one purpose, which has been held at the other time: creating and maintaining price stability. Resources for reachingThis goal is diverse, but are marked by low inflationary and high level of employment. Other main tasks of the ECB include foreign exchange policy, reserves' administration for membership nations, creating and implementation of monetary policy and supervision of payment systems.

The European Central Bank has many tools at hand that helps to meet its main goals. It is the only organization that can issue banking notes, similar to the federal reserve system in the United States. In addition, it can closely cooperate with other European banking organizations in both member and non -member countries to increase regional stability and streamline operations between countries. It also has a large part of the collection and analysis of financial statistics that can help influence and conduct policy.

Decisions are made through the Council for Administration, which has six executive members and Governors Centerthe Úal Banks of each member country. Executive members include the President, Vice -President and four other members. Traditionally, the composition of the Executive Council is the most as possible to prevent the perception of protectionism. The whole Council meets in Frankfurt in Germany twice a month to discuss politics and review of financial development.

ECB is not without controversy. When the broadly changing states with controversial historians are difficult, not if impossible, please all. Discussion on ECB politicians is a common political topic in both member and non -member countries. Support for organization is mixed, some of which believe that it has done important work in stabilizing the currency and monetary policy of Europe, while detectives instead prefer nationalist policy.