http://ForexHound.com/index.cfm ForexHound.com the Forex Trading Portal ECB Background en-us Copyright 2009 ForexHound.com the Forex Trading Portal Sat, 05 Dec 2009 04:36:37 EST Since 1 January 1999 the European Central Bank (ECB) has been responsible for conducting monetary policy for the euro area - the world’s largest economy after the United States. http://ForexHound.com/article.cfm?articleID=70617 Forex Hound Team Thu, 31 Jan 2008 03:20:00 EST http://ForexHound.com/article.cfm?articleID=70617 The tasks of the ESCB and of the Eurosystem are laid down in the Treaty establishing the European Community. They are specified in the Statute of the European System of Central Banks (ESCB) and of the European Central Bank (ECB). The Statute is a protocol attached to the Treaty. http://ForexHound.com/article.cfm?articleID=70618 Forex Hound Team Wed, 30 Jan 2008 03:23:00 EST http://ForexHound.com/article.cfm?articleID=70618 To maintain price stability is the primary objective of the Eurosystem and of the single monetary policy for which it is responsible. This is laid down in the Treaty establishing the European Community, Article 105 (1). http://ForexHound.com/article.cfm?articleID=70619 Forex Hound Team Tue, 29 Jan 2008 03:29:00 EST http://ForexHound.com/article.cfm?articleID=70619 The objective of price stability refers to the general level of prices in the economy. It implies avoiding both prolonged inflation and deflation. Price stability contributes to achieving high levels of economic activity and employment by http://ForexHound.com/article.cfm?articleID=70620 Forex Hound Team Mon, 28 Jan 2008 03:30:00 EST http://ForexHound.com/article.cfm?articleID=70620 The central bank is the sole issuer of banknotes and bank reserves. That means it is the monopoly supplier of the monetary base. By virtue of this monopoly, it can set the conditions at which banks borrow from the central bank. Therefore it can also influence the conditions at which banks trade with each other in the money market. http://ForexHound.com/article.cfm?articleID=70621 Forex Hound Team Sun, 27 Jan 2008 03:31:00 EST http://ForexHound.com/article.cfm?articleID=70621 In order to achieve its primary objective, the Eurosystem uses a set of monetary policy instruments and procedures. This set forms the operational framework to implement the single monetary policy (see Implementation). http://ForexHound.com/article.cfm?articleID=70641 Forex Hound Team Sat, 26 Jan 2008 03:33:00 EST http://ForexHound.com/article.cfm?articleID=70641 This is the process through which monetary policy decisions affect the economy in general and the price level in particular. The transmission mechanism is characterised by long, variable and uncertain time lags. Thus it is difficult to predict the precise effect of monetary policy actions on the economy and price level. http://ForexHound.com/article.cfm?articleID=70642 Forex Hound Team Fri, 25 Jan 2008 03:39:00 EST http://ForexHound.com/article.cfm?articleID=70642