This is natural: the credibility of monetary policy requires both that the Pact provides sufficient flexibility to be credible and that the framework is sufficiently solid to ensure that the management of public finances in the euro area and in each of its Member States really remains on a sustainable basis over the long term.
Monetary policy implementation As has been the case with the definition of monetary policy objectives and the central bank role, the principles for implementing monetary policy have also undergone changes, which are related to research done in the area. The present mainstream of macroeconomics is characterised by the tendency to simply portray monetary policy as representing a mere setting of interest rates.