Economics Monetary Policy Questions
The European Central Bank (ECB) plays a crucial role in monetary policy in the Eurozone. Its main objective is to maintain price stability within the Eurozone by controlling inflation. The ECB sets and implements the monetary policy for the Eurozone, which includes decisions on interest rates, open market operations, and the regulation of the money supply. It also supervises and regulates banks within the Eurozone to ensure financial stability. Additionally, the ECB acts as the lender of last resort for Eurozone banks, providing liquidity in times of financial crisis. Overall, the ECB's role is to ensure the stability and soundness of the Eurozone's monetary system.