This is perhaps the most clearly recognisable distinguishing feature of the European approach. European central banks have always given prominence to assessing monetary dynamics and asset prices when preparing monetary policy decisions. At the ECB, we have always foreseen that the close monitoring of monetary and credit developments would provide important elements of a framework for addressing asset price misalignments.
4 One particular focus of our monetary analysis is the low-frequency trend in money and credit developments, which is associated with the emergence of imbalances. This focus allows us both to assess risks to price stability in the medium to long term and, simultaneously, to lean against excessive money, credit and asset price growth in our interest rate decisions.