You are on page 1of 5

BuSrxleSs E(ool.

ltcS

f,

nuotl Soogree

A esco

lrssou
{2.{-

2,

MoueY,3RuKS

a9 Mot ernRy ?oercy

"

y , coN!!P-r-- j^J9-os:: o for{er r }i.".t .*.tnon gp c$ o.u gccd Jo, ano }hnr , w ,lho.;t ing r o49 Ne co'rs,d.t mont-s os o.rgf\n'n5 5 'n3 ihzsc fo(Fss s(\@s qY\ ebts - Mdrocn oj crcv,onge ' o'<led o.s gagrrun + lot grcds r - S+ore o$ ,rqlu (an be I'e\d Jo' J'lutc PurPcss oJ I jit'"".+ u*o , o yo'dsf'cK }or compan n3 {L' Pn.d - S{o,'JarJ o} oot,re n r\ o'cco u -*" ' es 'n trc^nlc'clto9 -^ ba\on l{ o,sJ s.gplg (M-,( , cutenE vstJ b9 ta go}iic gtur
Morve
'

os rru' Mona5sooltslcosh,butchcksondJcbi!cor(c'sue(f\{ouoc'crtd'fccrrS' y cons derd erchcroge }tneg cre ncf o} ' <\{houg 1hc9 ore a p9 'l \(rc mzJiu^ t" cqcd to $oal Jo"n oJ pogmcn ' Gedlt *o'*,' 6\ govr""'rt sioe thcg ore .,^p,f oc css vr ' be poid b9 cvra'cK bc.to.ncc nus|
lL

cq\'o is oJ to*ct frq"'st'c\icn tsts ' -lv'lresor '-rc c BosK Rscrs ; ocq cn\y o' Jrotl'on lhq r^\nrmu *s hlol +rGr'9\c+io$s <1os'\s ' ltst cs fo \L tq\io oJ a lontt(s tres ' Yr

F t'^o NE Y toon maK,og lo ma K'og q (oon , .^ benK "l":'':"t* u t- "**5 qccounl bo\oncs ar o'iolr o:i iatt \ooos t wV'o bon trs ac covl i !c{o'vr'co Uy n*fo ng

.L

f t+E cflEATIo

, " supply
tnd

A.vrKs crqle fl,.,vr Ks ceqle Bovr ts cec'

o.vrsc,.c\'ons o.v,*^c\'o
'

'

1\^a'9 crec |e mcng

b3 reSv o-g (s+abi'sV'e


Res

+h ECB) re?i\co'n

t I'mfs

drposif 'crois

Possibil

r:e cq{io

BcnK resrus

fqpi.ed

tcse(

s ' 1\,r r,oiu -' --

Scs$rv\flt rc3u\qltotr

ox !., I1q, \q 'n - -" \u rh.\,n fo i.." fr" sc B .ql.,\cs ftrq."td res45
rese<u<
r

fo{q\ ''*t

ts "-t-.-^"t
?os'

bar''

ls

relo"td {o Votd bS
fo'\io miYr'trl,J$ reserc

g\"v\a_ Girro-

'

(q\1o Aa1"'ceJ rSerq

= R.A.R,
oc-r
AD

l;;;;;

ct o;\i lJ^ b"nh cou\J creq\ rons l: T-:::.".[lr-J-:'..:;;; ."AK hq's *

H-l::'.:il ;: ,:*
leo<

\Vq\ess

, iq rq\\t$ n o p'\c\s
bo'nK'n3 sgs{ew' itoctn

l,s ,,r t\n


d

bon
Sc'of

r5

'*"
S

to rra \\ re_\o,\(

*T-::^Jr':,;-; {^
{oic\\

EX(cSS rtsQ cg

= BanK
:

res

eJ

sgs\ern

\endrn$

{rrneKq o,bi\\\ ( +wtc ''bi\i*Y


is lV,e numbcr
c$

'd

r(Sc(

\tl

-f:ner

t"p""s"t't t}'a

ban trin 3

\oang )

Tvc- mona\
sgsk-m

mu \t,p\rec

cps,\ (\ov,
fese(es.

Jo|.\o"s *hq+

tte

bonkins

cqn ctqq\9

,($
=

"i

xcts

il,M= Mo.reg rn"l{igli et

R.8.R

-t-

cro t toqns is turnmar'lcd b3 1:n" gof..'\io.r o3 *h mo.5 mufhp\ier o

+l.e

p'tenr,ol

dePcs,I creo{iorn

,,

It.o.c. ' I - -'


T-,s '5 yq. tn\ru

f't.Mx E Rf __----J
crq'troo

?okn\'ol egs't

r.,ornlrtr

'rn

lt'Pl'cr
c.cose

xcss

cesel

ues

bonk'ng ;gsfern CF
OANjKS

pss,bLc

iY\

i,n fh u(urt\

o$

\orng

ll 3 Tue L{AcRo -RoL.


tt'tP
fo cto

hnKs

pc,

-fq
{orm

essenhql Junct, ot.g

- fisf : bon Ks {r.m -trcs o ds (rqser er I 6 tpcv'ders b9 ir-nd,ng 0'


he\

ftarke-ls i

c
,
\

Jegslt.
s5s

B,'t,to 9 t

Seccn

$va- bcoK,ng

lew' <erks eddrtirql

otro$

mqK\^S

(oc^c

,n qxqg

OJ

tc{ql

rsroes.

Tnur"

o*

Joo

"

rnoFc

consfrotn

fs
Guv,s

"

bor

KS

'

(e"t..*\g .',b,

l'\

tJ

+l^S

\o.d unlrmil<l
,

Pct"t( to cr<a\c morog

- nqKs

- thcg

t:o..r qg61.o | .^ggrtgc& dzmo"rd !

; +he Jirsf covs\orn I s tLe uli[nguss aJ b nrep deras,ls in eopl,c. Jh,t t ronso-ctq5 acroah : rheg mqy pr1er {o t"ol ccs\ - \x/,|\,nq borcou;rs {!c sco,,r' ;s {h- u:,\t in3r^f ss oj (c^sL{a\r! / bosirvsses a"'d 3a:ern<naok to bo ccor. \a rncry5 {tn"t F bon ks q ouo'hbla ' - V, t\in3 Ln&rs ; bonKs $nag\-t<s r'ug no! bn w'\lln3 \o so[,sJg qtl ceed I t e mqnds , choos,og t ho\ ecss fser s , r\.r,(h t^r.[\ reAu ca Jep:r\ c.<cr\,. Th,S
Bon

'-

K eecsits

hopt

,- iv\ +h
cq-qr,\qt,on

C68 - aog cosslon in \\,u_ U.S .

Gcoein

-__- mo4t
sgni

: *I" ECB

reqg\q+e

bon

\nndrrrq Proc+rc4s

$iovr\ (ontro\ or bc.n k's ..bi\ily to


',,fiOPA

lnd

T2.Q

Tr]C

GNflAL EANK SY.sTEM

A ceotro.l asp"nsb;\ify oJ +tre Erropeo.n Centrqt Bqn K (Ects),s, o l"to hlqrg **5 o.n qe,t <onfrc\s to ,nJL,len.e \&Q.o tcotlom i C ts\cg: tl.r ose " + tris {o -l*r mqcra ou{oetnss bg "n-^o.g,ng tt^< avnor.rnt o $ ,.c\i .l,ty or.g q.oo.i [o.ht, in {h qconomg i b9 cho.ng,ng iwrcroS sjply 6r *{,o in lrest rq \es r \f seKs f sv'',Jt 4.5
f

. ESCB; ."yopon
ncr!,c'ro,\ a'tro.\

Sysie-

o,

Grrkrq\ BanKs

(t

ccrnpn

ies +l,e

EC

O c.nd ot\ t[
adop

bqnks (ruCg.
ov'

) of

o.tl {

mmbcs (u,het+e-t tV'og hor:e

ted -the

eoro

or

oo+.)

'

o rcs.gr;.

: ECB turo . -l-vre g51 g


'vnmbrS

fhe NCBs c) lose


Ev roggs,|eY '',

<c^t

tnes

thq{ hooe
o,s
\ou<

acp

kJ
orc

{^ EU

an thc+h

tl

-ex,sl- os lorg

i{rrq

oukide

{(X

q$?-a (\.

<ovorr,.Le,s tVtq*

oisp?

il^o cGo )

1Z

.5 MolA AV PoUcV

ln a.c 1o moinlo\4 pic sfqbitlg , tV. EC$ uses mo"qlcry p6lrcg o K9 ,n lrtst r\l-es : dckrm,n wr slon c ol ECBis mc,*o.y pottcg "Thg.^re stlbg ihq Gooeln,v'3 Cc",rot oJ itv- gc8. ah keg in luert ra\ts }t'\ {u(c c!'o' qr' i
{o,

- lnktesl ofe o.'.' t'.oi" _rel u e,"Ic": (UtOt "on !5_ W'a br:\K o$ tiqu,d,ly to tVq. bc,nkin3 sgsfgm.
,

p.o,r.de r qj14,c\^ v'c,v',olly

- Ral c, +tr- &Posi* locli.itv , rh'ch bonKS q.9 us {a Jt pos' k iu th th4 E,'*,.js kv" . (short tm e Pcs'ts )
banKs $rc^ {\tEuvos3s

t''oKc

o'rer

n'g\nt crEd,t to

n .r

4n ,t $h':t^ odrers cu-rn qv1

km

' (short }erm loons )

o Ltoneiqrg ?olcj instruvvrls

,'', a,vr in5\t,,irents thot fh ECB hc's n order {o cR ; qrio.in pr;cc slabiiii-g anJ Grntc'\ +h urc crrc. cnonc5 s.rPPl)
- Ogen
Slo.nd
i

vnorv<zf oPero\icn5

nt lou\i
ccsr

f..es

- M in,rnul -- 0 pn Morkf

\.>e
s

te-ipr

cet

fs lor

q-eA.{

i ns'{ i totis^s

Opcro\on

on icrrlortc.nt ro\q ,n sfeenn$ iq lrt rq'l-{s merrro.grug 'i l,.c \i1,J'tg sikotiora in l\n mqrKf auf s,gno\ltn5 lVv- rno'rre-tcj po\rc5 slano. ln |,ocl , thlg c^rr tvq pnncr go\ vnero.vtiswl lcr di.ecttg olfenng \v- rese-ruRs

Tnrg

p\og

o! tlal-

bonK,og

sgs

krn

Tilu.t

orc $* p.s .J

p,rn mor\<el opr-roticns,

qrith q Ma,n reJiooncinq oPeraf,ons I tiguid'{y - Prod.d\n3 fe urse t rc^nsclc+r 0h s ureeRtg {.tgutnc5 o o. vq.+ur,}3 oJ cv'a ureek ' rq,e-3 korrSqCf ton\ nqlinonnq o Pqrqlions i li 1.''iitv *froo'ir\3 Longc !rm a 'r"otur'\ o| {hree wb Y\ ths . uu i F\.r o, non$tg Jrc q.,et'o1 an
Frn -'{.:ni

("0} gtonned ) o* orw'J fi9 opr.rq\\ons o'\(on5e <o'rVQ n T4crt'ory in crder fo +{ cr\o,n o.e 1v.a- lrrlcrd;\ si\c^tton qn to sler in !<est rqk\ '+r<5nqc,{ e{}zc+s o} ontrpecleJ rrs kt liqoii{y J t'''cFua} icts

-l

- l+-.1".:!_:efg\,"": ;
lr.ol (i1uid;!y
li1o,c)i
l

,.

ntcl,',e-d

cL

hn I'l'{-

LuccsSs

Fern

''"c'nts
'

pcsi[i

oy',

vis - d

-vi s ]r. ]'.,on..c,.l sgi fern ( e-9

tc o{'rt I tn struc il"l o.w,oir n I aj

Ly a ttnc rno<K*i.

ln ofdrJ o ll '
o tf l0

\o

or sc\\s pub\ic bqnksr re\r \'xJ inccerse +h ECS buy bonds, fL E.cS stls \rnos, bovr Ks/ rssr\t> dgctos
ol

ler banh

rserqs

r CB

bugs

bon

-+,Siond,nq

;lo.c.('{,es

Trzvzg oi
fac,, tii'''et on tl^cj r

rn *c

Proicc

c"\

qbSorb

ouevn

r3h'f

tcXu,a,ly.

Tv*t" qrq

f''''o

qt-'oi\abi {o e-\ i9 '\u cc*:tr ler pc'r\ cs bg tt" rrl CSs (q" rrJcBs ) lu..cti ot' s os ot crr \rc'[ bc'n k sc u.J."r '"'' o1,e ECB
..d*"n

inisLerJ

o-;

bqvr

krsr

bcrn

6*-rn;glt trErd, \ hr )ro"n NCi5 Mn.o'vrol t^'\..Ejh't'\ ; oc' Mo.g,"'.,\ L"divrq [""ttr\ ' 16,.}v-t tvrlrqt co'k- ) ' o o{trr ro\A NtB (Jloo. {o. tr I . +^ ro.K( 6uetvg\t & psl fs s.i{h \+ - Dtoos' t J{outt-tY '" .^ l fqte J r'' l 'est Ft^{ c' ^'3h r"o'rket (o*""'n3 t\"- tot o*t 1a- eps't osi\'\ ' +!' Ecg rcrs,ng o' Bg
.

(ceittng

+'\^

cho..g{s l\^s c'5-t

{o ol trc'"tg lo' bon Ks o"td $'acr-b5 {^c incn f "'}e stgnq\ +Lq e(B rs o.. . tat 'l*t ou'' \\' ep"tii J't'\t$ lmr.or *., io'les "rncr K if p 'o$t\ab te fo rsttoin r"'ot'05 supq\ i ov\i Lc ' \c dsc te.d'ng on tc exg\o't lvtl' bo tcotj o'cld tfionq\ res'( \)! J* uon ra, lo mor5 suPf ty J cc.poc,ly to \-\^ J"tt s t ( sgvof co d"s'." {o Hgovt
-U

"-i M,nirnun f"et(s

b9 ci.,ang,n g +hr- rese{oe re-q'ircmrn | / +vL cB cc.n 'rcr{s o(fer tVu cog ci\ o) thc- banking sgs{em. - f) regi..A clsre-s in c-rqo{ ' .t<(!-ss reJ(S JectooSe e.nd so Jocs llrna m o*c-5
d

r'. o\ti g\ier .

- I j t".1ui."J
r.\ o \\i ? [i( .

r(l
c3r

de

<-reo'S

'

eccss reger<!

ifl

\+q foo ^r-5 creas?- tw sc dos

celo r-\qrtt

t tlo .1o^on oJ ik (eoel cor.espcnd,vg ho ldrng s qve te r o rcqkd c{ o, botcrnc sbet. I-rra- re 1(nred rtserw b tVa .,.o..oge ln krst m{e otpr tVq mo'rntenav\c Pno '11 Fhc vnqin ..$,non.ing o pero-hors o$ +u,l. src5{ero .
o

inim.:

es ,rre oboti{ Z% ' {h e(o qrqq ,


61

q \tVnogh

*}

rcsr e

$ eocl^

fetron

iS

de{rmined

'.'

te-tqtiorn

-q-

1;no

!,,',.t pu{ Fu! ol rv,n- minlmtn ces,ri'oe s5s lem is to s\obit'se {Ve mov"c5 tiq:'d'ty 5[n6vtage ' nrar ki ,n ferest cqtes on c,o.fe o. sfrtrturc\
Non -s \:rndqrd n^cJres

lf*b,trtg

\crn Ttrc oe*\,o.,o\ l.oma,lro. K oJ \Ve Ewcqs 1o )eot ur\!\^ u\roresn circurns \oncS qn to

ollrr" a high dtgrce


coh
I

o$

ti \4.

ochieuhg

1ts
rY{

b]cct

lolto-'"g non - s\q,,roc.r A Yn'o-qsureJ: . Fi.d -rotq, |o\l-et{otrvrznf ligJrt'\Y l\c$\s\cn o *gons,on oJ (t5f 6 J osse\ e\igib\o g's o\\akta\ . Lcnger -lerm (i1u,d '{, prctrs,on
c i1oid,fy
c Orrtngh

'ucs

v1 {'rvro5 o$

'\qo,inors

wnrKt

fevsicnS

vr LCg has uso

r9ro iv^ !ort,gu curenoes Jqbt sec";ties purc\..ass oJ spe.l{1.


p(cu'

'

* Sh;l|,nq
Tvr
rn plogrnn

Aggto3ok De*o"d
'lt'mq

ly ) ' Ti^ Jo tlo.,','ng \obte orFh rn<to ptobtair'^\ sho1.j th y^(su\e! to be taKeo to de\

goa\

v\ac(o Po\icq 's !q p\05rt

s\ob'f

'?*

!V*

eco"o

^"1

of

{" t\

pten

\io\ ($"it .5o\u

Pric '{q5tr

Po!\cm
Q

ticYr

P"\l

ioc

\S

ntm

\cr

Yvnl-n

$o9 $orrdS

( Accss.cn \
\nN

&i.cr

ro

ks on 3 ta"l'ng Jo<'titiel
rqqJlre rvn F bo'1s

Aeuce roe,o<

taf'on
6!P grcurl{n )

*,oo,u.

YAD

Sctl Aars t.rtts oo stqd$ Jod\lhis Ro,S f.S,.c rtau'rernrvr t


cvqv\

f in krtst cqks .'re }{^e kt5 iinK b.tuen s\,$+s .{ +u" A'D' cu''e '
lncreos in morsg s,rpp\g
Dcrqqs

3es

i lvt< 'ror$ s"ppl5

ornJ

' '

+v' AD

rn

mo"ag s"?p;i

n3}'f (expcrusionor5 mor{o.y p(<ra ) tt$f (ton f'octiovro rg wc,ct ry ptig\ fvc- AD curo s\^iik fo fl'a
cu

tr:e shif {s tc

tl^c-

\e. incrc-os{ moru-5 s.rgp[q ( using tt'"


ecgnry\9

thrc p\icA iao\s

o'booe-

fa'-tno$e
Ynor-5

+tq_

.,-re io r+s ["tt o-* ptogwunt plerrial ' tr'iher cos tP co"\ ah o$r l^.-q\\\9 c-enom$
'[ tr

'l sduQ-

slpp Iy

rrsY\g Sopltg iv. kves

tts -->l tfAoe

{.ctPsro!,r}h

Y vctt<. : o.g3 rtgr \a er'nond


u ",

e,^,.
$

\qglnZ'r

Cat<

in

[o

fion

-6-

You might also like