European Central Bank

The European Central Bank is in charge of maintaining price stability in the eurozone and has a complex mandate due to the 19 member states. This book assesses the ECB's work, independence, policies, and instruments, and the evolution of its role during and after the eurozone crisis. Challenges include incomplete monetary union, Germany's hegemonic ambitions, and different economic policies.

\n Format: Hardback
\n Length: 208 pages
\n Publication date: 19 November 2020
\n Publisher: Agenda Publishing
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The European Central Bank (ECB) assumes the crucial responsibility of administering monetary policy for the eurozone, with the primary objective of maintaining price stability by ensuring that inflation remains below 2 percent. However, the intricacy of managing the monetary policy for the 19 member states of the euro, coupled with the political implications that accompany it, belies the simplicity of this brief mandate. This book aims to provide a comprehensive exploration of the history, development, and day-to-day operations of the ECB. It assesses the institution's effectiveness, independence, the policies and instruments at its disposal, and the evolution of its role during and after the eurozone crisis of 2010.

In the context of an incomplete monetary union, where Germany holds a dominant position and individual member countries pursue distinct economic policies, the ECB faces significant challenges in its macroeconomic management. The book highlights the complexities and dynamics that underpin the ECB's operations, shedding light on the strategies employed to navigate the economic landscape of the eurozone.

The ECB's mandate encompasses a wide range of responsibilities, including setting interest rates, managing liquidity in the banking system, and implementing monetary policy measures to foster economic growth and stability. The institution operates under a dual mandate, aiming to achieve both price stability and sustainable economic growth.

One of the key challenges the ECB faces is the need to strike a balance between maintaining price stability and supporting economic growth. This delicate task requires careful consideration of various factors, such as inflation expectations, economic indicators, and political developments. The ECB's policy decisions have significant implications for the entire eurozone, as they can impact consumer prices, investment decisions, and overall economic activity.

The book also delves into the ECB's independence and its role in shaping the economic policies of the eurozone. The institution operates under a strict mandate from the European Union, with its decisions subject to review and approval by the European Central Bank Governing Council. However, the ECB has maintained a high degree of independence in its operations, allowing it to make decisions based on its economic analysis and without political interference.

The ECB employs a range of policies and instruments to achieve its macroeconomic objectives. These include quantitative easing, interest rate adjustments, and liquidity measures to influence the supply and demand of money in the economy. The institution also conducts regular surveillance of the financial system and monitors economic indicators to assess the health and stability of the eurozone.

The eurozone crisis of 2010 was a significant test for the ECB's policies and resilience. The crisis highlighted the vulnerabilities of the single currency and the need for coordinated economic policies across the eurozone. The ECB played a pivotal role in implementing emergency measures to stabilize the financial system and provide liquidity to banks. The crisis also led to significant reforms and improvements in the eurozone's financial architecture, aimed at enhancing stability and resilience.

In conclusion, this book provides a comprehensive and insightful examination of the European Central Bank. It explores the institution's history, development, and day-to-day operations, assessing its effectiveness, independence, and the policies and instruments at its disposal. The book also highlights the challenges and opportunities faced by the ECB in managing the monetary policy for the eurozone, emphasizing the importance of maintaining price stability and supporting economic growth. The ECB's role as a key institutional pillar of the European Union is underscored, and its contribution to shaping the economic policies of the eurozone is acknowledged.

\n Weight: 466g\n
Dimension: 163 x 241 x 24 (mm)\n
ISBN-13: 9781788212946\n \n