The European Central Bank (ECB) is the central bank responsible for monetary policy within the Eurozone, ensuring price stability and regulating member banks. It plays a critical role in European and global financial markets.
Inflation targeting is a monetary policy strategy where a central bank sets an explicit target rate for inflation and uses tools such as interest rate adjustments to achieve this target. This policy was first adopted by New Zealand in 1990 and has since been implemented by over 50 countries, including the UK and a more flexible approach by the USA.
