Economics World Bank Questions
The European Central Bank (ECB) plays a crucial role in the European Union (EU) economy. Its primary objective is to maintain price stability within the Eurozone, which consists of 19 EU member states that have adopted the euro as their currency. The ECB is responsible for formulating and implementing monetary policy, including setting interest rates and conducting open market operations.
Additionally, the ECB supervises and regulates banks within the Eurozone to ensure the stability and integrity of the financial system. It also acts as a lender of last resort, providing liquidity to banks during times of financial distress.
Furthermore, the ECB represents the Eurozone in international financial institutions and plays a significant role in shaping EU economic policies. It works closely with national central banks and other EU institutions to coordinate economic and monetary policies, aiming to promote sustainable economic growth and stability across the EU.
Overall, the ECB's role is to maintain price stability, ensure the soundness of the financial system, and contribute to the economic well-being of the European Union.