The Role of the ECB on International Inflation As with all central banks The European Central Bank exists to fight inflation there would not be an ECB or in fact no need for central The main functions the ECB are to preserve low inflation and a low unemployment level are not compatible with each other. The ECB attempt The European Central Bank activates an increase in the money supply, Because the ECB is buying government bonds their price tends to rise, On the other hand when the European Central Bank wants to tighten money By controlling the amount of the money supply the ECB also controls * The Significance of the ECB's Role on the European Economy The European Central Bank plays an important role in stabilizing