All these are the shared challenge of Mervyn King, and Bank of England, of Ben Bernanke, and the US Fed, of the ECB and all my colleagues in the various committees, here in the ECB’s Executive Board, and in the Governing Council. But on top of that in our case we have two  BIS Review 50/2007  11  other challenges.
Naturally, we may blame most of such problems on the movements abroad, but I hope we all agree on one point at least – movements in prices and the exchange rate depend heavily on the type of measures we undertake in response to internal and external challenges. And the challenges have never been so numerous!