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Certification Guideline ECB S  Form

Certification Guideline ECB S Form

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[Music] the European Central Bank and the Euro system explained this is Sarah Sarah is currently traveling around Europe she finds it very convenient to buy things with Euros in many different places without having to change money and it's easy for her to compare prices across different countries Sarah wonders who's looking after the euro [Music] well that's the job of the European Central Bank based in Frankfurt and the central banks of the countries that use the euro altogether they form the Euro system the main task of the ECB is to Define and Implement monetary policy for the Euro area this means maintaining price stability in other words keeping inflation rates at two percent over the medium term the ECB views inflation symmetrically meaning that high inflation and low inflation are equally as negative but what does all this have to do with Sarah persistently low inflation harms the economy but so does high inflation High inflation means that prices rise ra

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