Technological change and financial market developments do not only affect monetary policy instruments but also the whole transmission process and consequently the strategy of monetary policy. In this complex and changing world the Eurosystem was right in rejecting any simple rule and adopting an all-encompassing two-pillar strategy. Central bankers have to continuously reassess the information content of many economic indicators.
Let me pick out some of them - output, money, stock prices and bond market indicators - not because other variables, like wage developments and the fiscal policy stance, are less important, but because the former are most affected by technological and financial market changes.