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Monetary Policy of European Central Bank
Конспект3 Финансы, кредит, Экономика, Международные организации
In order to pursue the aim of stabilizing interest rates, the Eurosystem’s minimum reserve system enables institutions to make use of averaging provisions. Compliance with the reserve requirement is determined on the basis of the institutions’ average daily reserve holdings over the maintenance period. Institutions’ holdings of required reserves are remunerated at the rate of the Eurosystem’s main refinancing operations
To sum up, European Central Bank’s monetary policy is an integral part of the European economy. Monetary policy performs very responsible and to Europe now very important and necessary economic growth, to be able to do that Europe Central Bank has its own instruments to achieve it. Those instruments are very complex and global, but at the same time even one individual in one of the EU member states can be able to influence and change economic situation in Europe without any Europe Central Bank instruments, for example, some kind of suggestions which are not included in Central Bank’s policy.
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The European Central Bank is the bank for Europe's single currency, the euro. The European Central Bank’s main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 17 European Union countries that have introduced the euro since 1999. And the primary objective of the European Central Bank is to maintain price stability, but to deal with price stability, Central Bank uses monetary policy. First of all, the primary objective of the Eurosystem is to maintain price stability. The Eurosystem comprises the ECB and the national central banks that have adopted the euro. The Eurosystem and the ESCB will co-exist as long as there are EU Member States outside the euro area. Without prejudice to the primary objective of price stability, the Eurosystem has to support the general economic policies in the Union. In pursuing its objectives, the Eurosystem has to act in accordance with the principle of an open market economy with free competition, favoring an efficient allocation of resources.
