EURO ZONE BENCHMARKS AND THEIR IMPORTANCE IN ENSURING THE FUNCTIONING OF RISK-FREE FINANCIAL MARKETS

IRINA-ELENA CHIRTOC, AURELIAN - IONUȚ CEAUȘESCU
2020 Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie  
Interest rate benchmarks are important for the functioning of financial markets and for the transmission of monetary policy. Financial markets are largely based on such indices as a reference in financial contracts. The absence of benchmarks could trigger financial market disruptions, with a possible significant negative impact on the transmission of monetary policy decisions of the European Central Bank and on the Eurosystem's ability to contribute to the smooth implementation of policies
more » ... on of policies promoted by the competent authorities in terms of financial system stability. On September 21, 2017, the Governing Board of the European Central Bank announced its decision to develop a new euro rate, based on data available from the Eurosystem, which complements the benchmarks produced by the private sector and serves as a reserve effect.
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