Money as a unit of measure in economic transactions, is an indispensable element in our life. So much so that, in addition, it is one of the key determinants of price stability
Excessive price increases generate distortions in the functioning of the economy. Therefore, central banks are the institutions responsible for controlling the amount of money -in this activity develop the so-called "monetary policy" - tend to seek the ideal medium for prices to rise or fall significantly or environment.
Today, the objective of the Bank of Spain, besides being the only bank with privilege to issue notes, is to contribute to the monetary policy carried out by the European Central Bank, the institution responsible for sustaining the stability in the countries which share the euro, with the aim of trying to maintain an inflation rate below or close to 2%.
Money are not only notes and coins. As the economy has evolved, they have created other payment instruments (such as cards, checks or bills of exchange) that allow you to pay without using physical money. It has also developed alternative channels (such as Internet or mobile) that speed up transactions and allow payments without the physical presence of the seller or the buyer.
As a result of the historical evolution of the economic system itself, born financial institutions in which we place our wealth for safekeeping.
In addition to the importance of some participants in payment systems that are financially sound entities, the strength and effectiveness of these systems is essential to have a means of safe and efficient payment. Hence the Bank of Spain has the mission "to promote the smooth operation of payment systems", as stated by one of its basic functions. As a result, the Bank of Spain is the agency responsible for surveillance of such systems.
Excessive price increases generate distortions in the functioning of the economy. Therefore, central banks are the institutions responsible for controlling the amount of money -in this activity develop the so-called "monetary policy" - tend to seek the ideal medium for prices to rise or fall significantly or environment.
Today, the objective of the Bank of Spain, besides being the only bank with privilege to issue notes, is to contribute to the monetary policy carried out by the European Central Bank, the institution responsible for sustaining the stability in the countries which share the euro, with the aim of trying to maintain an inflation rate below or close to 2%.
Money are not only notes and coins. As the economy has evolved, they have created other payment instruments (such as cards, checks or bills of exchange) that allow you to pay without using physical money. It has also developed alternative channels (such as Internet or mobile) that speed up transactions and allow payments without the physical presence of the seller or the buyer.
As a result of the historical evolution of the economic system itself, born financial institutions in which we place our wealth for safekeeping.
In addition to the importance of some participants in payment systems that are financially sound entities, the strength and effectiveness of these systems is essential to have a means of safe and efficient payment. Hence the Bank of Spain has the mission "to promote the smooth operation of payment systems", as stated by one of its basic functions. As a result, the Bank of Spain is the agency responsible for surveillance of such systems.
The Importance of Bank of Spain in sustaining the stability
![The Importance of Bank of Spain in sustaining the stability]()
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