Notably, the structure and mandate of the European Central Bank (ECB), as well as the perception of continuity with the policies of the pre-euro Bundesbank, have enhanced the ECB’s credibility and contributed to low and stable inflation in the euro-zone.
Although Germany and several other countries in the union enjoyed low inflation before the adoption of the common currency, with some partial exceptions to be discussed in a moment, the ECB has been able to “export” that benefit to other members of the monetary union.