European Central BankThe European Central Bank (ECB) is one of the world's most important central banks. It is responsible for setting the monetary policy of the 15 member States of the Eurozone. It was established by the European Union (EU) in 1998 with its headquarters in Frankfurt, Germany. The primary responsibility of the ECB and the national central banks of the euro area, is to maintain price stability within the Eurozone and in so doing keep inflation low. Price stability is defined by the Governing Counsil as inflation at or below 2%. Unlike the U.S. Federal Reserve, the ECB has only this one primary objective. Additionally, the ECB has the right to approve the issuance of euro bank notes and it contributes to maintaining a stable financial system. It is also responsible for monitoring the banking sector. An example or this occurred during the 2007 credit crisis when the ECB intervened by lending billions of euros to banks to help stabilize the financial system. To learn more about the ECB and how it influences the currency market clik on the link below:
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