Introduction

This chapter describes the Europe 2020 scoreboard, the Better Life Index, the Human Development Index, and other current approaches for assessing well-being. It discusses the European Central Bank's (ECB's) structure, functions, and monetary policy tools that it employs to influence the banking sector and the economy at large. The chapter defines the well-being goals of macroeconomics as improvement in living standards, stability and security, and financial, social, and ecological sustainability. Thus growth in gross domestic product (GDP) alone may or may not contribute to the general goal of human well-being, depending on whether it furthers these ultimate objectives. The chapter discusses macroeconomic issues in an economy closely interlinked to that of other countries, be it European trading partners or the rest of the world. It explores current global issues of poverty and inequality, economic growth, human development, and environmental challenges.