What are the European System of Central Banks, the European Central Bank, the Governing Council, the “Eurosystem,” and “Euroland”?
The European System of Central Banks (ESCB): The ESCB is the body charged with managing the money in circulation, conducting foreign exchange operations, holding and managing the Member States’ official foreign reserves, and promoting the smooth operation of payment systems. The ESCB is comprised of the national central banks of the 15 EU Member States and the European Central Bank (ECB). The ESCB is loosely analogous to the Federal Reserve Board of Governors (see “The Fed and the ECB – similarities and differences”). The European Central Bank (ECB): The ECB implements the monetary policy decisions of the Governing Council (see below). It is headed by a six member Executive Board, appointed by the Council of Europe for non-renewable eight-year terms. The ECB is loosely analogous to the Federal Reserve System (see “The Fed and the ECB – similarities and differences”). The Governing Council (GC): The GC determines monetary policy for the Member States participating in the single currency
Related Questions
- What are the European System of Central Banks, the European Central Bank, the Governing Council, the "Eurosystem," and "Euroland"?
- What is the difference between the European Central Bank, the Eurosystem and the European System of Central Banks?
- What relationship exists between the European Central Bank and the European System of Central Banks?
