Lost in terminology?
Key concepts in simple words.
15 December 2017
When the ECB gives forward guidance, we are providing information about our future monetary policy intentions. Why do we do this and how does it affect the economy at large?
18 October 2017
In the wake of the financial crisis, politicians and policymakers have often called for structural reforms to help lift economic growth. But what are structural reforms? And why does the ECB care about them if its mandate is to keep prices stable?
7 April 2017
The new €50 note is out and waiting for you in cash machines. But do you know how the central banks that issue the notes generate income as a result? Find out how seigniorage income works in the euro area.
What are non-performing loans (NPLs)?
12 September 2016
Loans are considered “non-performing” when more than 90 days have passed without the borrower paying the agreed instalments. Why are bad loans an issue for banks and how does bad debt affect monetary policy?
What are minimum reserve requirements?
11 August 2016
Banks are required to hold a certain amount of funds in their current accounts with the central bank. Why do they have to do this and how does it work?
What is TARGET2?
29 June 2016
TARGET2 is a payment system owned and operated by the Eurosystem. But why is it important and how does it work?
What is TLTRO-II?
24 June 2016
The second series of targeted longer-term refinancing operations is one of the ECB’s non-standard monetary policy tools. How do the new TLTROs help consumers, businesses and the economy, and what distinguishes them from usual refinancing operations?
What is the difference between nominal and real interest rates?
25 May 2016
What is the difference between nominal and real interest rates? And why does it matter?
What is the quiet period?
14 April 2016
Governing Council members observe a so-called quiet period before monetary policy meetings. What does this mean in practice?
What is the deposit facility rate?
10 March 2016
The deposit facility rate is one of the three interest rates the ECB sets every six weeks as part of its monetary policy.
What is a central bank?
10 July 2015
Is a central bank just another bank? What is the role of central banks in the economy and what is special about them?
How is the ECB accountable for its actions?
10 July 2015
What does accountability mean for the ECB? How do we explain our actions to the public?
What is monetary policy?
10 July 2015
Why does monetary policy matter? Because it has a direct impact on interest rates and an indirect impact on inflation, the economy and employment.