Submitted by: Submitted by halopaste
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Pages: 11
Category: Business and Industry
Date Submitted: 06/21/2013 06:03 AM
Monetary Policy
The European Central Bank
Organization
European System of Central Banks
European Central Bank (ECB)
Malta Greece Spain Ireland Bulgaria Sweden Denmark
Slovenia France Slovakia Austria Latvia Poland Romania
Finland Estonia Germany
Cyprus
Netherlands Hungary Lithuania
United Kingdom Czech Republic
Eurosystem
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Belgium
Italy
Portugal
Luxembourg
21-Jun-13
Decision-Making
THE DECISION-MAKING BODIES OF THE ECB
EXECUTIVE BOARD
President Vice-President Four other members
GOVERNING COUNCIL
Executive Board Governors of the EURO area NCBs
GENERAL COUNCIL
President Vice-President Governors of the EU Member NCBs
Prepares meetings of the Governing Council Implements monetary policy Manages day-to-day business Exercises certain powers
Formulates monetary policy Adopts guidelines and makes decisions to ensure the performance of the Eurosystem ESCB Commitees
Has no responsibility for monetary policy Tasks of former EMI Reports about progress towards convergence Advises preparation for adopting Euro
21-Jun-13
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Mandate of the Eurosystem - Two-Pillar Approach
The primary objective is to maintain price stability.
Without prejudice to this objective, the Eurosystem shall support the general economic policies of the European Community.
Makes the monetary policy decisions based on an overall assessment of the risks to price stability
Governing Council
ECONOMIC ANALYSIS on the economic dynamics and shocks
cross-checking
MONETARY ANALYSIS on monetary trends
Full set of information
21-Jun-13 Page 4
Comparison: FED and the Eurosystem
Topic decision-making Eurosystem Governing Council FED FOMC
€: all NCBs are allowed to vote equally $: 5 out of 12 reserve banks are allowed to vote Executive Board has less power than the Board of Governors objectives Price stability Multiple objectives
FED is more flexible than the Eurosystem...