This supports our credibility, understood in terms of the solid anchoring of private medium and longer-term inflation expectations at levels consistent with price stability. •  Second, we behave in a steady-handed manner, conferring persistence on developments in short-term interest rates so as to strengthen the transmission of monetary policy.
23  Buiter (1981) contains a more general discussion of the benefits of “contingent rules” (i.e. those involving conditionality) over “fixed rules” (i.e. those involving unconditional commitments). 24  See, for example, the question and answer session at the ECB press conference held on 2 April 2009 ( http://www.ecb.europa.eu/press/pressconf/2009/html/is090402.en.html). 25  Trichet (2005).