Pure inflation targeting which was the prevailing orthodoxy prior to the crisis is getting modified and now it is accepted by many that pure inflation targeting is not the ideal approach in the context of financial stability. The debate, however, by no means, is fully settled.
The ECB, as the central bank of the euro area, can first make a direct contribution in its fields of competence, e.g. through the provision of the pertinent infrastructure. To be more concrete we are, as I am sure you are aware, replacing the euro area’s current decentralised payment system with a single technical platform, TARGET2, which is due to go live in 2007.