I should therefore like to stress here that the undesirable social and economic consequences of inflation, namely inefficient allocation of resources, high levels of interest rates, the regressive inflation tax, arbitrary redistribution of income and wealth to the detriment of the most vulnerable, and, last but not least, economic instability, lower growth and lower job creation, are the benchmarks against which one has to assess the social benefits of price stability.
This is why a credible commitment to maintaining price stability is so important for the living standards of European citizens. And why our fellow citizens, according to all surveys, are so profoundly attached to price stability. I thank you for your attention. BIS Review 27/2007  5