Still, there can be no doubt that if we needed to adopt a more expansionary policy, the risk of side effects would not stand in our way. We always aim to limit the distortions caused by our policy, but what comes first is the price stability objective.
That is the implication of the principle of monetary dominance, which is embedded in the Treaty and which lends monetary policy its credibility. Monetary dominance means that we can – indeed we should – acknowledge and draw attention to all the consequences, intended or unintended, of our monetary policy operations.