CH5 The_ECB_monetary_policy - 1 The ECB monetary policy...

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The ECB monetary policy Since 1 January 1999 the European Central Bank (ECB) has conducted the single monetary policy for the euro area. The Treaty on European Union assigns the Eurosystem the primary objective of maintaining price stability , reflecting a broad consensus in society that maintaining stable prices is the best contribution that monetary policy can make to economic growth, job creation and social cohesion . In October 1998 the Governing Council adopted its monetary policy strategy and presented it to the public, well in advance of the launch of the single currency. The strategy has been successful in providing a robust framework for decision-making and a basis for accountability vis-à-vis the public. This was essential for establishing the credibility of the ECB and confidence in the euro

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