Monetary policy glossary

The labour force as a proportion of the total working age population. The working age population is normally defined as the population aged between 15 and 64 years of age. The labour force comprises both employed and unemployed persons.

Economic variables which anticipate or contain useful information for predicting future developments in other variables.

The process of adaptation by EU Member States of their legislation, in order to make it compatible with the Treaty on European Union, the Treaty on the Functioning of the European Union and the Statute of the European System of Central Banks and of the European Central Bank for the purposes of: i) integrating their national central banks into the European System of Central Banks, and ii) adopting the euro and making their national central banks an integral part of the Eurosystem. See also European System of Central Banks (ESCB), Eurosystem, national central bank (NCB), Treaty on the Functioning of the European Union (TFEU)

A comprehensive agenda of structural reforms aimed at transforming the EU into “the most dynamic and competitive knowledge-based economy in the world”, launched in 2000 by the Lisbon European Council. It has been replaced by the Europe 2020 strategy.

Funds lent by monetary financial institutions (MFIs) to borrowers and not evidenced by negotiable documents or represented by one single document (if it has become negotiable). This description includes loans granted to households, non-financial corporations and government. Loans to households can take the form of consumer credit (loans granted for personal use in the consumption of goods and services), lending for house purchases (credit extended for the purpose of investing in housing, including building and home improvements) and other lending (loans granted for purposes such as debt consolidation, education, etc.). See also credit to euro area residents

The rates of interest or the yield on interest-bearing financial assets with a relatively long period to maturity, for which the yield on government bonds with a maturity of ten years are often used as a benchmark.

A regular open market operation executed by the Eurosystem in the form of a reverse transaction. Longer-term refinancing operations are carried out through monthly standard tenders and normally have a maturity of three months. See also reverse transaction

longer-term refinancing operation

A fixed amount which an institution deducts in the calculation of its reserve requirement within the minimum reserve framework of the Eurosystem. See also Eurosystem, minimum reserves