The Eurosystem and the ECB explained
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Find on this page key concepts in simple words explained by the ECB.
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The Eurosystem has a set of monetary policy instruments and procedures at its disposal to achieve its main objective of maintaining price stability in the euro area. This set forms the operational framework to implement the single monetary policy.
By using the appropriate set of monetary policy instruments the ECB:
The operational framework of the Eurosystem is based on a number of principles, which aim at:
The Eurosystem monetary policy is conducted in a decentralised way: The Governing Council of the ECB takes the decisions and the national central banks (NCBs) of the euro area are responsible for their implementation.
The Eurosystem conducts open market operations, offers standing facilities and requires credit institutions to hold minimum reserves on accounts with the Eurosystem.