Furthermore, there are also new uncertainties and possibly fundamental changes in the functioning of the economy. Low interest rates, low inflation and persistently low growth put our economic theories and past empirical relationships into a real test. Facing these new challenges, it is sensible that the ECB should conduct a strategy review of our monetary policy frameworks.
It will offer us an opportunity to conduct a thorough scientific assessment of our monetary policy framework and to evaluate its effectiveness in the light of the new economic landscape and new monetary policy instruments. 2. Furthermore, turning to the medium-to-longer term, we should not turn complacent and think that the monetary union is completed. It isn’t.