In contrast, Slide 4 shows that the version of the Taylor rule based on forecast inflation (in green dots) explains both the course of monetary policy earlier in the past decade as well as the decision not to respond aggressively to what did in fact turn out to be a temporary surge in inflation in 2008.
This is also why we launched the process for redesigning our banknotes6. The redesign is part of a long-term development process to ensure that the next generation of euro banknotes will continue to be secure, accepted and an efficient means of payment.