Like everyone else who shares the single currency, the Greek economy has – from the moment it joined the euro area – enjoyed a number of significant advantages in monetary terms. Being part of the euro area has strengthened the Greek economy.
Because such changes in perceptions could be counterproductive, concern about triggering them might discourage a central bank from taking action that otherwise could have been appropriate and beneficial for the economy in the near term. Lack of transparency and lack of credibility, in this sense, could reduce the effectiveness of monetary policy in stabilizing the economy against transitory shocks.