European Central Bank (ECB)

The European Central Bank (ECB), the central bank of the eurozone that conducts monetary policy for the euro area. It is notable for its limited lender-of-last-resort powers compared to the Fed and Bank of England and for its legal restrictions barring it from financing government deficits or debt.

Claims that use this term

• The ECB lacks the lender-of-last-resort powers the Fed and Bank of England exercise
• The ECB justified austerity through rational-expectations Ricardian consumer theory
• The ECB is legally barred from financing government deficits or debt