Monetary Policy of European Central Bank
In order to pursue the aim of stabilizing interest rates, the Eurosystem’s minimum reserve system enables institutions to make use of averaging provisions. Compliance with the reserve requirement is determined on the basis of the institutions’ average daily reserve holdings over the maintenance period. Institutions’ holdings of required reserves are remunerated at the rate of the Eurosystem’s main refinancing operations
To sum up, European Central Bank’s monetary policy is an integral part of the European economy. Monetary policy performs very responsible and to Europe now very important and necessary economic growth, to be able to do that Europe Central Bank has its own instruments to achieve it. Those instruments are very complex and global, but at the same time even one individual in one of the EU member states can be able to influence and change economic situation in Europe without any Europe Central Bank instruments, for example, some kind of suggestions which are not included in Central Bank’s policy.
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