The European Central Bank, or ECB, is the primary bank governing the eurozone. It is also the main institution responsible for implementing the single currency in the eurozone. The ECB’s main objectives are to maintain price stability, promote full employment and promote financial stability. The EU’s price stability goal is achieved by setting interest rates for all banks operating in the EU. Employing a dual mandate to promote healthy banking and to protect depositors, the ECB makes decisions with far-reaching consequences for EU member states and their citizens.The ECB is responsible for setting the ECB’s monetary policy through setting interest rates on its banking operations as well as on government bonds issued by its member states. In addition, it has sole responsibility to conduct liquidity operations on behalf of the eurozone’s banks. To achieve its short-term economic goals, such as limiting inflation and creating jobs, the ECB makes decisions about interest rates and its buying or selling of government bonds and other financial assets. In making such decisions, it aims to achieve its dual mandate in an effective manner while avoiding negative market reactions that could threaten economic growth or lead to an actual recession.While there have been some challenges facing the ECB throughout its history since it was founded in 1998, it has made significant contributions toward achieving EU member states’ goals for monetary and economic harmonization among eurozone countries. It achieves this through closely monitoring domestic economies while simultaneously promoting healthy growth within all eurozone countries via low interest rates on government bonds issued by member states. With all these responsibilities under normal circumstances— plus those associated with dealing with global financial downturns at the same time — it can be easy to see how an organization like that requires exceptional skill and diligence from its staff members at all levels.
