Arguably, public confidence, and hence the ability of policymakers to use fiscal instruments aggressively to address short-term concerns, is enhanced by whatever legislative rules, guidelines, or procedures exist that-however gently or firmly--tend to compel the policymakers to bring the budget back toward balance, and the debt-GDP ratio back toward stability, after the crisis has passed.
You played a key role in building up the ECB’s credibility and reputation as an institution focused on maintaining price stability. Your master stroke was the formulation of the ECB’s stability-oriented monetary policy strategy. Together with your team, you created this strategy from the ground up in 1998, amidst an environment of high uncertainty and within a very short period of time.