As a result, the consumers’ needs are already taken into account in the definition of price stability. Let me mention briefly at this juncture that the stability of the euro is additionally supported by the governments of the Member States through their adherence to the Stability and Growth Pact.
Purchasing power depends mostly on the internal value, but also to a certain degree on the external value of the currency. The internal value reflects purchasing power within the currency area, whereas the external value – in our case the exchange rate versus the $ the world’s leading currency – reflects purchasing power outside the euro area.