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The European Central Bank: targets, strategies and behaviour

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  • G. Verga

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Abstract

This paper describes the monetary policy of the European Central Bank. The analysis, entirely based on an investigation of the Bank's own documents, suggests that the ECB's monetary policy strategy is rather complex, but consistent with the objectives of the Maastricht Treaty. The Bank allows itself some room for maneuver, and its decisions are based on signs from many variables (including money and exchange rates) and not only on its estimates of inflation. Although the primary objective is price stability, the ECB tries as far as possible not to neglect the real sector.

Suggested Citation

  • G. Verga, 2000. "The European Central Bank: targets, strategies and behaviour," Economics Department Working Papers 2000-EP00, Department of Economics, Parma University (Italy).
  • Handle: RePEc:par:dipeco:2000-ep00
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