2.1.2.1 Greece’s Monetary Policy Strategy The Eurosystem conducts monetary policy in the euro area, their principal aim is making certain that prices remain stable. Monetary policy sets the fundamental ECB interest rates. This activity is carried out by the Governing Council of the European Central Bank (ECB). Monetary policy decisions are made with the principal aim in mind, which is then publicised by the President of the ECB (Bank of Greece, 2014; F.Saccomanni, 2013; Vlamis, 2014). This Monetary Policy strategy includes, defining price stability quantitatively and aims at keeping the inflation rates just below 2% over the medium term. The two analytical approaches adopted is to analyse the present economic and fiscal improvements and the short to medium-term inflation effects. A fiscal and monetary investigation is conducted to analyse and assess conditions of general liquidity. All this considering inflation developments come from analysing the economies of all domestic and non-domestic counterparts (Bank of Greece, 2014; F.Saccomanni, 2013; Vlamis, 2014). The Bank of Greece, being essential to the Eurosystem plays a part in formulating the Eurosystem’s monetary policy. The Governor of the Bank of Greece is also a member of the ECB Governing Council. The ECB Governing Council decide monetary policy. The Bank of Greece are also involved in implementing the Eurosystem’s monetary policy. The bank also arranges for liquidity to, and acknowledges deposits from, credit organisations in the Eurosystem’s fiscal approach (Bank of Greece, 2014; F.Saccomanni, 2013; Vlamis, 2014). The Bank of Greece is responsible in informing the Greek public on monetary policy. Euro credit institutions are allowed to accept national bank credit th… … middle of paper … …orld Bank (2014) The World Bank. [Online] Available at: http://www.worldbank.org/ [Accessed 5 March 2014]. The World Bank (2014) The World Bank Glossary. [Online] Available at: http://www.worldbank.org/depweb/beyond/global/glossary.html#34 [Accessed 6 March 2014]. UNDP (2007) The United Nations Development Programme (UNDP) in its Human Development Report., The United Nations. University of London (2014) The Centre for Financial and Management Studies – Conceptualising Development. [Online] Available at: http://www.cefims.ac.uk/cedepapp/116_web_unit/page_08.htm [Accessed 10 March 2014]. University of Yale (2006) Economics 115b. [Online] Available at: http://www.econ.yale.edu/~gjh9/econ115b/index.html [Accessed 10 March 2014]. Vlamis, P., 2014. Greek fiscal crisis and repercussions for the property market. Journal of Property Investment and Finance, 32(1), pp. 21-34.
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