🇪🇺 ECB's "business model" is as follows:
Illya Gerasymchuk
🇪🇺 ECB's "business model" is as follows:
➕ income: ECB creates money and invests it into financial assets (e.g.: FX, bonds, funds)
➖expenses, such as operational expanses (e.g. staff), facility and open market operation expenses (e.g. TARGET)
profit/loss = income - expenses
ECB recorded an €8 billion loss in 2024 - what happens in that case?
that's a balance sheet question. to understand what happens we need to look into the operational or "business" model of the European Central Bank
