Definition of European Central Bank (ECB)

The central bank European, also recognized by its acronym BCE, is the institution Y authority maximum in matters related to Euro, the single and common currency that circulates in those countries that are part of the community politics known as the European Union (EU).

Central banks are financial institutions, of a public nature, present in almost all the nations of the world and whose main reason for being is to be the highest authority on matters monetary policy, that is, central banks are responsible for issuing legal tender in the country in question and everything inherent in the implementation and design of the monetary policy that that country will have.

Ideally, the Bank central office has absolute independence and autonomy from the executive power or the political authority that is to understand and develop the types of monetary policies that best suit to the country, however, many times this does not happen and that is where disasters usually occur in terms of financial

The ECB is also responsible for its attributions, to intervene in the prices that are established in the EU, protecting and precisely guaranteeing their stability and removing the ghost of the inflation. As we know, inflation is one of the most important economic scourges because it eats up all the citizens' wages.

It is also necessary to develop and implement monetary and economic policies of the EU and exercise control over the Finance system, which we know is for any country a pillar that guarantees its stability and proper economic functioning.

And it also acts as a kind of nexus and common place to which all the Central Banks that make up the EU resort and which adopted the Euro as their official and sole currency. In this sense, its main task is to coordinate their activity to guarantee the cooperation of each state. Formally, this joint action is called the Eurosystem.

It is worth noting that the ECB is an entity autonomous that it does not receive orders or accept directives from the rest of the central banks that make up the eurozone.
It is managed by an executive committee made up of six executives who serve an eight-year term.
It has a governing council and a general council that are also in charge of policy design.