We are working to understand all the factors behind these exchange rate movements. In setting monetary policy, we have to take into account the effects on aggregate demand of these factors, as well as the effect of the exchange rate movements themselves. Exchange rate movements also have a direct effect on the prices of traded goods and services and, therefore, on inflation.
And I think mutualising debt by only hoping the rules are adhered to is very dangerous. All this requires constitutional change. But Germany cannot be completely isolated from the rest of the Eurozone. We carry the largest burden of the rescue packages, which all benefit from Germany’s AAA rating. So Germany is the stability anchor and without it, it wouldn’t work.