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ECB

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The ECB, or European Central Bank, is the central bank of the Eurozone states that use the Euro as their common currency. The main goal of the ECB is to promote price stability within the Eurozone. The ECB focuses on controlling inflation via interest rate policy. Critics of the ECB have suggested that this is too narrow a policy objective, as the ECB appears to neglect exchange rates and employment levels in its policy making. The ECB is a member of the European Union's European System of Central Banks, and it was modeled upon the German Bundesbank. The ECB has a board of directors, which is headed by the President of the ECB, and a board of governors, which includes the members of the ECB board of directors plus a representative from each of the other central banks in the European System of Central Banks.



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