The Eurosystem includes the national central bank (NCB) and the European central bank (ECB). All states that have central bank in the eurosystem are in the European Union and there are 27 member states. The countries which have not adopted the Euro but that are in the European central bank system are allowed to have an independent monetary policy.
In brief, the European central bank has two main objectives to define the monetary policy of the euro area and to take decision to introduce this currency. The euro area is the world's largest economy after the USA.
It was created in 1998 after many stages that are explained in the first part of this study.
[...] This rate determines the price to which the trade banks are refinanced near the central bank. Inflation rate b. To maintain price stability Its second main objective is to maintain price stability. That's why the ECB has adopted a specific strategy to ensure the successful conduct of monetary policy. It has defined price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below 2%. Moreover, it aims at maintaining inflation rates below, but close to over the medium term. [...]
[...] That's the reason why the European Central Bank with the Eurosystem takes care of the promotion of payment system. It pays close attention to their smooth functioning, as well as to reducing the related potential risks. The smooth functioning is crucial for: - a sound currency and for the conduct of monetary policy - The functioning of financial markets - the maintenance of banking and financial stability. IV. The actual functioning a. The change of aim This institution has a real influence because it is at the origin of the monetary policy of the European Community. [...]
[...] Organization of the European Central Bank The ECB is independent hence it has no control from the other institutions of the European Union. The European System of Central Banks (ESCB) It is composed of the ECB and the national Central Banks of the 27 member states of the European Union. The ‘Euro system' is the term used to refer the ECB and National Central Banks of the EU member states which have adopted the Euro. Its main objective is to maintain price stability in order to control inflation. [...]
[...] Papademos (Vice-President of the ECB), Jean-Claude Trichet (President of the ECB), Miguel Fernandez Ordonez (Governor, Banco de Espana), Christodoulos Christodoulou (Governor, Central Bank of Cyprus),Yves Mersch (Governor, Banque centrale du Luxembourg), Nout Wellink (President, De Nederlandsche Bank), Andres Lipstok (Governor, Eesti Pank). Middle row (left to right): Erkki Liikanen (Governor, Suomen Pankki - Finlands Bank), Axel A. Weber (President, Deutsche Bundesbank), Christian Noyer (Governor, Banque de France), Klaus Liebscher (Governor, Oesterreichische Nationalbank), Ivan Iskrov (Governor, Narodna banka Slovenska), Vitor Constancio (Governor, Banco de Portugal), John Hurley (Governor, Central Bank and Financial Services Authority of Ireland), Mitja Gaspari (Governor, Banka Slovenije). [...]
[...] Weber (President, Deutsche Bundesbank), Christian Noyer (Governor, Banque de France), Klaus Liebscher (Governor, Oesterreichische Nationalbank), Vitor Manuel Ribeiro Constancio (Governor, Banco de Portugal), John Hurley (Governor, Central Bank and Financial Services Authority of Ireland), Nout Wellink (President, De Nederlandsche Bank). Back row (left to right): Jurgen Stark (Member of the Executive Board of the ECB Erkki Liikanen (Governor, Suomen Pankki - Finlands Bank), Nicholas C. Garganas (Governor, Bank of Greece), Guy Quaden (Governor, Nationale Bank van Belgie/Banque Nationale de Belgique), Mario Draghi (Governor, Banca d'Italia), Mitja Gaspari (Governor, Banka Slovenije). [...]
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