👨‍🎓 The ECB - similarities and differences with the FED

**19/52** Macro Mornings Education

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👨‍🎓 This is part of a 52-week series on macroeconomics designed to build your knowledge step by step. Feel free to catch up on previous emails here if you'd like to start from the beginning!

Dear all,

In our last email, we discussed the role of the Federal Reserve in the U.S. economy. Today, let’s turn our attention to another major central bank that plays a crucial role in the global economy - the European Central Bank (ECB) - and compare its functions and policies with those of the Federal Reserve.

The European Central Bank (ECB) is the central bank for the 19 European Union countries that have adopted the euro as their currency. Established in 1998, the ECB’s primary objective is to maintain price stability within the eurozone. Here’s how the ECB compares to the Federal Reserve:

Monetary Policy Goals:

ECB: The ECB’s primary mandate is to maintain price stability, defined as keeping inflation below, but close to, 2% over the medium term. Unlike the …