The ECB's Monetary Policy E-Book

Martina Paiotta

• Herausgeber: Youcanprint
• Kategorie: Bildung
• Sprache: Englisch
• Veröffentlichungsjahr: 2020

Beschreibung

This book published entirely in English. Launches the most relevant issues of the ECB in terms of economic and monetary strategies

Das E-Book wird angeboten von und wurde mit folgenden Begriffen kategorisiert:

Leseprobe

TITOLO | The ECB's Monetary Policy AUTORE | Martina Paiotta ISBN | 9788831694469 Prima edizione digitale: 2020 © Tutti i diritti riservati all'Autore. Questa opera è pubblicata direttamente dall'autore tramite la piattaforma di selfpublishing Youcanprint e l'autore detiene ogni diritto della stessa in maniera esclusiva. Nessuna parte di questo libro può essere pertanto riprodotta senza il preventivo assenso dell'autore. Youcanprint Self-Publishing Via Marco Biagi 6, 73100 Lecce www.youcanprint.it [email protected] Qualsiasi distribuzione o fruizione non autorizzata costituisce violazione dei diritti dell’autore e sarà sanzionata civilmente e penalmente secondo quanto previsto dalla legge 633/1941.

What the ECB is: The ECB is the Central Bank of the Member States of the European Union. It is based in Frankfurt, Germany. It was founded on June 1, 1998, and has a current assets of 10 billion euros. The bank was set up and formed under the Maastricht Treaty (1992).

The aim is to keep prices stable, produce and issue banknotes, ensure the stability of the banking and financial system, and, at the end, their security

What Monetary Policy is: Monetary policy is the set of choices that concern both the supply of money and the interest rate.

Monetary Policy is classified in two categories: Expansive Monetary Policy and Restrictive Monetary Policy.

Monetary policy, as the term refers, is based on expansionary interventions by the Central Bank, in order to increase the liquidity present in the system.

If monetary liquidity increases, then the interest rate tends to fall. This is feasible in a system that sees GDP and inflation at very low levels and without a possible autonomous recovery.

Restrictive monetary policy, concerns disproportionate GDP

growth and inflation. It’s certainly a good thing, but it still needs to be checked to avoid a probable dissection after the peak.

The monetary base is being narrowed and interest rates are increasing.