But even in countries where the central bank officially targets only inflation, monetary policymakers in practice also aim to stabilize the real economy around some normal level or path. Much has changed in the world of central banking since the onset of the Great Recession.
But we had a very serious weakness in terms of economic and fiscal governance inside the euro area which has been revealed by the global crisis. 2. Well-informed politicians are not hesitating to talk about a possible break-up of the euro area. The weaknesses cannot be denied. The weaknesses have to be corrected.