Given the empirical properties of money – not just in Monetary Union, but stretching back decades and even centuries – I strongly believe that the burden of proof lies with those who argue against any important role for money in the ECB’s monetary policy strategy. The empirical and conceptual principles underlying our strategy have been faithfully reflected in our policy discussions and decisions.
So we can work to achieve both at the same time. Our primary tool for bringing demand and supply in the economy into balance and restoring price stability is our policy interest rate. In the event of severe stress in the financial system, we have a range of tools we can use to provide liquidity against good collateral and keep credit flowing.