- Monetary analysis
One pillar of the ECB’s framework for conducting its comprehensive analysis of the risks to price stability, which forms the basis for the Governing Council’s monetary policy decisions. Monetary analysis helps to assess medium to long-term trends in inflation, in view of the close relationship between money and prices over extended horizons. The monetary analysis takes into account developments in a wide range of monetary indicators including M3, its components and counterparts, notably credit, and various measures of excess liquidity. See also: economic analysis.