European Central Bank

The European Central Bank is in charge of maintaining price stability in the eurozone and is tasked with managing the monetary policy for 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: Paperback / softback
\n Length: 208 pages
\n Publication date: 19 November 2020
\n Publisher: Agenda Publishing
\n

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 significant political implications, underscores the complexity 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 formidable challenges in its macroeconomic management. The book sheds light on these challenges and emphasizes the importance of the ECB's role in shaping the economic landscape of the eurozone.

The ECB's history dates back to the establishment of the European Monetary Institute (EMI) in 1957. Over the years, it has undergone significant transformations, culminating in the creation of the European Central Bank in 1998. The institution's primary mission is to foster monetary stability in the eurozone, ensuring price stability and sustainable economic growth.

To achieve this, the ECB employs a range of policies and instruments. These include setting interest rates, conducting open market operations, and implementing quantitative easing measures. The ECB's decisions have significant implications for the economies of the eurozone, as they influence borrowing costs, investment, and consumer spending.

One of the key challenges facing the ECB is the need to maintain price stability while promoting economic growth. This delicate balance requires careful consideration of various factors, including inflation, unemployment, and economic imbalances. The ECB's policies aim to strike a balance between these competing objectives, often navigating through complex economic scenarios and unforeseen events.

Another challenge is the ECB's independence. The institution operates under a dual mandate, which includes both monetary policy objectives and financial stability objectives. This independence ensures that the ECB can make decisions free from political interference and market pressures. However, it also requires the ECB to be accountable for its actions and decisions, which can be challenging in a politically sensitive environment.

The eurozone crisis of 2010 was a significant test for the ECB. The crisis highlighted the vulnerabilities of the eurozone's financial system and the need for stronger regulatory measures. The ECB responded by implementing a series of measures, including quantitative easing and a comprehensive asset purchase program, to stabilize the financial markets and promote economic recovery.

Since the crisis, the ECB has continued to evolve and adapt its policies to address new challenges. The institution has emphasized the importance of financial stability and has taken steps to strengthen the resilience of the eurozone's financial system. This includes implementing reforms to improve the supervision and regulation of banks and financial institutions and promoting financial inclusion and innovation.

In conclusion, the European Central Bank plays a pivotal role in administering monetary policy for the eurozone. Its complex mandate, coupled with the challenges of an incomplete monetary union and the political implications, requires a comprehensive understanding of the institution's history, development, and day-to-day workings. This book provides a valuable contribution to our understanding of the ECB and its role in shaping the economic landscape of the eurozone.

\n Weight: 336g\n
Dimension: 156 x 233 x 22 (mm)\n
ISBN-13: 9781788212953\n \n