In this standard work, the authors introduce the theory and practice of European monetary policy in a proven manner. They cover the evolution of the Eurosystem, practical monetary policy, the transmission of monetary policy impulses, and potential disruptions to monetary policy caused by fiscal, wage, and exchange rate policies. The completely revised 6th edition not only thoroughly examines the impacts of the financial, economic, and European sovereign debt crises on the monetary policy of the European Central Bank, but also takes into account recent monetary theoretical and policy insights, as well as the institutional changes within the Eurosystem. Aspects of behavioral economics are also considered. The book is aimed at students of economics and practitioners in finance, as well as in the social and economic sciences.