Models of the monetary transmission channels would suggest that the central bank sets the short-term interest rate, which, in turn, influences interest rates over the entire maturity range, the exchange rate and, possibly, other asset prices. Through the different spending components, these financial variables affect output and prices. Furthermore, the banking channel has to be taken into consideration.
The Governing Council also agreed to organise a series of conferences on euro changeover issues - the "Euro 2002 Information Campaign conferences" - which will bring together the key parties involved in the euro cash changeover process at both national and European level.