He argues that the success of such strategies in stabilising inflation expectations at a low level is not yet fully understood from a scientific perspective. His claim is, therefore, that monetary policy is ahead of economic science in that respect. Let me be clear on these points. There are indeed limits on the extent to which policy judgement can be based on science.
In almost any policy decision, experience, intuition, “Fingerspitzengefühl”, or whatever name we can put to it, plays a crucial role. Perhaps the role of these elements has even increased in recent times. The outside world has become increasingly international and the economic system has become more complex. Let me give you just one example.