How different is the FED from the ECB???

Economics Economics Questions
1

I dont know how much the FED differs from the ECB, but I think ECB works on a more conservative approach.

But what are their main differences???

2

The Fed is controlled by the Federal Government.

There is no federal government in Europe. The individual states appoint directors to the ECB, so they all have to be in agreement in order to influence ECB policy.

3

There aren’t any. Central banks with monopolies on the value of money are all the same. Infact they are partners in crime in that the ECB is creating currency in some sort of weird synch with the FED. This of course has the result that both sides of the Atlantic have mal-investments that would not have taken place without the new currency that will have to be liquidated at some point in the future.

You could make the very weak argument (Especially given the last two month of behavior by central bankers.) that there is a modicum of competition for the ECB with the central banks of England and Switzerland. But this is weak as these banks also have monopolies on their currencies.