Session
Management, Business and Economics
Description
The main goal of the ECB monetary policy is to keep prices stable and the inflation rate below or close to 2% in the medium term. The legal basis for the single monetary policy is set out in the Treaty on European Union, the Treaty on the Functioning of the European Union, and the Statute of the ECB and the ESCB. The monetary policy strategy of the Eurozone countries is also associated with the stability of the balance of payments
To achieve its main objective, the ECB uses a set of monetary policy instruments as well as various procedures. The Euro system operations framework consists of the following set of instruments: Open market operations; Instruments available (permanent); Minimum reservation
Inflation represents an increase in the price of goods and services, thus reducing the role of money as a medium of exchange, acting as a tax on the holding of money. An environment with inflation makes it difficult for firms and individuals to make decisions, thus reducing economic efficiency.
Not much attention has been paid directly to the exchange rate, but the main objective (price stability) of the ECB-led monetary policy depends on exchange rate movements
Interest rates play a very important role for a country's economy; they are the main aggregate for securing or absorbing liquidity in the banking market.
Keywords:
Monetary policy, single monetary policy, monetary policy instruments, ECB, euro area, member states, interest rate, exchange rate, inflation.
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-47-5
Location
UBT Kampus, Lipjan
Start Date
30-10-2021 12:00 AM
End Date
30-10-2021 12:00 AM
DOI
10.33107/ubt-ic.2021.525
Recommended Citation
Govori, Arbiana, "Monetary Policy in the Eurozone" (2021). UBT International Conference. 549.
https://knowledgecenter.ubt-uni.net/conference/2021UBTIC/all-events/549
Included in
Monetary Policy in the Eurozone
UBT Kampus, Lipjan
The main goal of the ECB monetary policy is to keep prices stable and the inflation rate below or close to 2% in the medium term. The legal basis for the single monetary policy is set out in the Treaty on European Union, the Treaty on the Functioning of the European Union, and the Statute of the ECB and the ESCB. The monetary policy strategy of the Eurozone countries is also associated with the stability of the balance of payments
To achieve its main objective, the ECB uses a set of monetary policy instruments as well as various procedures. The Euro system operations framework consists of the following set of instruments: Open market operations; Instruments available (permanent); Minimum reservation
Inflation represents an increase in the price of goods and services, thus reducing the role of money as a medium of exchange, acting as a tax on the holding of money. An environment with inflation makes it difficult for firms and individuals to make decisions, thus reducing economic efficiency.
Not much attention has been paid directly to the exchange rate, but the main objective (price stability) of the ECB-led monetary policy depends on exchange rate movements
Interest rates play a very important role for a country's economy; they are the main aggregate for securing or absorbing liquidity in the banking market.