The chosen stability-oriented monetary policy strategy is forward-looking and medium-term oriented. The Eurosystem has a policy framework which truly 1  BIS Review 16/2000  reflects the complexity of the economy. It is sufficiently flexible to allow for appropriate responses to specific shocks.
It also allows account to be taken of the possibility of regime shifts that could impact on the stability of important economic relationships in the course of time. Let me briefly recall the main elements of the Eurosystem’s strategy. A clear definition for the primary objective to maintain price stability in the euro area contributes to stabilising market expectations.