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Home Forex Terms

European Central Bank (ECB)

by Miracle Admin
December 27, 2020
in Forex Terms
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Definition – What does European Central Bank (ECB) mean?

The European Central Bank is the central bank for the European Union member states. It controls the monetary policy for the euro and seeks to keep prices stable across the Eurozone. Each member state owns part of the ECB and participates in the decisions of the bank, but their influence is not necessarily equal. The ECB is the only body that can sanction the creation and issuance of euros.

ForexTerms explains European Central Bank (ECB)

The ECB is the central bank for one of the world’s largest economic zones. Taken together, the eurozone nations have a bigger economy than the United States. The catch is that, although the countries are aligned on monetary policy, their domestic budgets and social programs are not centrally controlled. The consequences of this resulted in the Sovereign Debt Crisis that started in Greece in 2010. The ECB is headquartered in Frankfurt, Germany, and Germany is seen as one of the most influential member states when it comes to the ECB.

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