Moreover, we have proven our commitment to price stability (with the limitations derived from the instruments we have at hand in this transition stage) from an intertemporal approach, that is, looking through the economic cycle. This is the only conceivable course of action for a Central Bank with a strategic vision.
Both banking supervision and monetary policy share a number of institutional foundations that will ensure their effectiveness: a precise mandate, independence from euro area governments and strong accountability towards the European people. But let’s be also reminded that both banking supervision and monetary policy face limits to their effectiveness.