Our objective is to promote maximum sustainable employment and stable prices over time. These goals are enshrined in law, and they also make sense in economic theory and practice. Central banks are uniquely suited to promoting price stability, and they contribute to maximum employment and growth over time by eliminating the uncertainties and distortions of high and unstable inflation.
While Austria’s stability oriented currency policy made sense for a small open economy, it would not be wise to try to maintain a fixed exchange rate between the international currencies in an era of globalisation of financial markets and full liberalisation of capital transfers. The euro area economy is far less open than the economies of the individual euro area countries.