Final answer:
The European Central Bank (ECB) aims to maintain economic stability across the Eurozone by focusing on three main goals: promoting economic growth, achieving low unemployment, and sustaining low inflation. In addition to these, the ECB also works towards maintaining stable interest rates and a positive trade balance to ensure a strong and resilient economy.
Step-by-step explanation:
Goals of the ECB
The goals of the European Central Bank (ECB) are focused on maintaining the overall health of the macroeconomy within the Eurozone. These goals traditionally include three key objectives which are economic growth, low unemployment, and low inflation. The ECB utilizes various monetary policy tools to achieve these objectives and maintain the stability of the euro currency.
Economic growth is desired as it indicates a prosperous economy with expanding business activities and wealth. Low unemployment ensures that as many people as possible are employed, contributing to the economy and reducing social problems. Meanwhile, low inflation is crucial because it helps keep the cost of living stable, preserving the purchasing power of the currency and preventing the negative effects of high inflation, such as uncertainty in the economy.
Beyond these primary goals, the ECB also aims to maintain sound economic health through other objectives like maintaining stable interest rates, which affect borrowing costs for businesses and individuals; striving for a balanced