Money and Interest Rate - How the central bank controls the nominal interest rate

4 important questions on Money and Interest Rate - How the central bank controls the nominal interest rate

The European Central Bank (ECB) is:

The central bank of the Eurosystem, which comprises all countries using the eerie as their currency.

Central banks are generally concerned with two broad policy objectives:

  • Price stability: the maintenance of a relatively low rate of inflation
  • Stabilisation: policy directed towards moderating increases in unemployment

The key decision-making body in the Bank of England is called the:

Monetary Policy Committee (MPC)
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The key decision-making body in the Federal Reserve System, and the Fed's equivalent of the ECB's Governing Council is:

The Federal Open Markets Committee (FOMC)

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