On the 4th September 2014 the European Central Bank (ECB) cut its Essay

On the 4th September 2014 the European Central Bank (ECB) cut its benchmark interest rate to 0.05%. It will also launch an asset purchase programme, which will buy debt products from banks - Essay Example The policy allows the execution of its tenders in the form of variable tenants that are fixed by the euro system. Another key interest rate is that on the deposit faculty done to the banks that are used to make the deposits overnight with the euro system (Culbertson, 1968). Another key interest rate is the rate in the marginal lending faculty which offers them the credit to bank from the euro system Nonstandard measures are also used in the policy that arose after the financial crisis in 2008. The introduced the policies that are unprecedented in the nature and the magnitude with their main aim in the safeguarding the primary objectives that involves primary objectives in the stabilization of prices and also in the ensuring that the appropriate policies on the transmission mechanism of the money. The monetary brings about the definition of money as the stock of asserts that can be accepted in the making of transactions. The used of the money in the system is brought clearly as the medium that is used in the exchange of goods and services (Culbertson, 1968). Money is valued in the store of value of asserts ion the economy. The medium is a unit of account that makes the ability in the measure of values and prices. The functions of the money in the economy makes it to have policies that will control the supply in the economy. The control of the supply in the economy is done majorly through the central banks. In Europe the European central bank uses different policies in the regulation of the supply. The central bank in Europe reviewed the policies in 2013 and included different values in the policies in the MO there were different assets included which were the total stock and coins in the circulation and includes also the operational deposits of the banks that are held in the central bank. Another asset that is included in the policy is the MO with also the inclusion of deposits that are held residents at banks and also in the building societies