The European Central Bank (ECB) as the main monetary authority
connecting the central banks of the euro area has celebrated its
20-year anniversary on the 1st of June 2018. Its remit
is quite wide, serving 340 million citizens who live in the 19
countries that have decided to share a single currency. This is not
an easy task when one considers the divide that exists between the
different economies that make up the euro-block.
Monetary policy consists of the actions of a monetary authority
(for example a central bank) that determines the size and rate of
growth of the money supply, which in turn affects interest rates.
Monetary policy is maintained through actions such as modifying the
interest rate, buying or selling government bonds (quantitative
easing), and changing the amount of money banks are required to
keep in the vault (bank reserves). More on Monetary policy as explained on
Investopedia.com.
