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Price Stability - A Main Objective Of European Monetary Policy

Author

Listed:
  • Tudor Mugurel AURSULESEI

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • Liviu-George MAHA

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

According to Article 127 of the Treaty on the Functioning of the European Union, the main objective of the European System of Central Banks is to maintain price stability. Through a monetary policy strategy, the Governing Council aims to stabilize inflation to the lowest level, below 2% in the medium term. The EU Member States have assumed the transposition of monetary policy into national policy and compliance with the inflation threshold. However, the implementation of European policies lies with the political decision-makers of each state, who most often place their interests above the interests of the Union. The research aims to analyse how the states have implemented European monetary policy. Monetary policy imposed an annual inflation rate of maximum 2%. In 2018, only 12 of the 19 European Monetary Union Member States managed to maintain the inflation rate below 2%.

Suggested Citation

  • Tudor Mugurel AURSULESEI & Liviu-George MAHA, 2019. "Price Stability - A Main Objective Of European Monetary Policy," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6, pages 55-74.
    • Handle: RePEc:jes:eurint:y:2019:v:6:p:55-74
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    File URL: http://cse.uaic.ro/eurint/proceedings/index_htm_files/EURINT_2019_AUR.pdf
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    References listed on IDEAS

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    Cited by:

    1. Tudor Mugurel Aursulesei & Liviu - George Maha, 2020. "Dysfunctions Of The European Monetary Union," Junior Scientific Researcher, SC Research Publishing SRL, vol. 6(1), pages 82-91, May.

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