P/E/175. The European Central Bank within the EMU: is if effective in price stability?

In this paper it is discussed whether the ECB activity in price stability within the euro area is effective. This is made by comparing the ECB with other central banks, the Bank of England (BOE) and the Federal Reserve (Fed) in terms of interest rate decisions, inflationary performance in both the domestic and international climates, and sensitiveness to economic and social factors. First, the ECBs background and basic duties are explained, next the monetary policy and the banks strategy are examined. After comparing with the other two banks and analysis, recommendations to further strategy to cope with entry of new member states are given. Finally, the paper concludes about the idea of ´one rate to rule them allŽ and the ECBs capability to cope with the price regulations.