Not surprisingly, this element has triggered discussion and also an occasional misunderstanding of the ECB’s policy framework. For example, the two pillars have occasionally been misunderstood as implying distinct, possibly conflicting “targets” for our monetary policy. From my description, however, it should be clear that price stability is the only “target”, or more precisely, the primary objective of our policy.
The two pillars of the ECB’s monetary policy strategy provide a framework for organising the large body of economic information available to policymakers in a manner that helps the Governing Council of the ECB to take appropriate policy decisions in order to maintain price stability. They are not distinct targets in themselves. In my view, a diversified, multi-pillar framework of analysis offers great advantages.