two-pillar strategy

two-pillar strategy definition - finance
The European Central BankÂ’s strategy for managing monetary policy. On one pillar, the ECB scrutinizes the growth in monetary supply (called aggregate M3) over the medium to longer-term horizons; the ECB believes that looking at monetary supply helps the central bank look beyond short-term effects caused by temporary shocks to the financial system. On the other pillar, the ECB monitors inflation.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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