European Central Bank
The establishment of the European Central Bank (ECB) and with it the launch of the euro has arguably been a unique endeavour in economic history, representing an experiment of hitherto unknown magnitude in central banking. This article aims to describe the main aspects of the set-up and the responsibilities, strategy and operations of the ECB. It also aims to summarize some of the main lessons learned from the establishment of the ECB for monetary economics, and to sketch some of the prospects for the ECB and the euro.
KeywordsBudget deficits Business cycles Economic and Monetary Union (EMU) Euro European Central Bank (ECB) European System of Central Banks (ESCB) Euro area Exchange Rate Mechanism (ERM) Globalization Harmonized Index of Consumer Prices (HIPC) Inflationary expectations Maastricht criteria Monetary transmission mechanism Open market operations Price stability Reserve requirements Standing facilities
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