THE ROLE OF THE EUROPEAN CENTRAL BANK IN SHAPING THE MONETARY POLICY OF THE MEMBER STATES OF THE EUROPEAN UNION
РОЛЯТА НА ЕВРОПЕЙСКАТА ЦЕНТРАЛНА БАНКА ПРИ ФОРМИРАНЕТО НА ПАРИЧНАТА ПОЛИТИКА НА ДЪРЖАВИТЕ-ЧЛЕНКИ НА ЕВРОПЕЙСКИЯ СЪЮЗ

Summary/Abstract: The main goal of the European Central Bank (ECB) is price stability. This means that prices should not rise too much (inflation), rise too slowly, or even fall too low (deflation). To achieve this, the ECB is taking steps. This is what we call monetary policy. The ECB does not have a direct impact on rising and falling prices, but it does have the tools to indirectly impact inflation, namely monetary instruments. There is a difference between conventional monetary instruments - such as political interest rates - and unconventional instruments - such as buying programs. The ECB pursues an adjustable monetary policy - also known as quantitative easing - as it seeks to stimulate the economy by providing low interest rates for households, businesses and governments. The ECB announced its new monetary strategy on July 8, 2021. The Governing Council believes that price stability is best maintained if eurozone member states aim for a 2% inflation target in the medium term. This target is symmetrical, which means that the negative and positive deviations of inflation from the target are equally undesirable. The ECB is taking action against the eurozone and all its central banks.

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