Other Important Central Banks #Notebook

13.3 Other Important Central Banks #Notebook

The Maastricht Treaty created the European Central Bank (ECB), the central bank of the euro area.

The ECB was consciously modeled on the Fed and their structures are similar. However, the ECB is more decentralized than the Fed because the NCBs control their own budgets and conduct their own open market operations. 

The ECB does not regulate financial institutions, left the duty to each member's government. 

Other important central banks, the Bank of England, the Bank of Japan, and the Bank of Canada are unitary institutions with no districts. 

Despite the structural differences, the Bank of Japan implement monetary policy in ways very similar to the Fed and ECB.

Reference

Wright, R.E. & Quadrini, V. (2009). Money and Banking. Saylor Foundation.  Licensed under Creative Commons Attribution-NonCommercial-ShareAlike CC BY-NC-SA 3.0 license.