Others would even prefer the strategy to be replaced by the adoption of a policy rule, determining the monetary policy stance as an explicit function of some variables, or by an even simpler rule relating to an intermediate target. Such alternative approaches are, in my view, not well suited to the formulation of monetary policy in the euro area.
Let me start with simple rules. For instance, under the famous k-percent rule proposed by Milton Friedman in 1956, central banks would have to ensure that some specified measure of the money stock rises by a pre-defined fixed rate each year, irrespective of economic conditions and circumstances.