We expect such movements to continue in the period ahead, given that favourable conditions at home support growth in investment and exports and, by extension, higher employment and living standard of citizens. Most importantly, the results achieved are long-term and lasting.
In the euro area, monetary policy goals are therefore not stated, and cannot be expressed in terms of their relative importance (which, in principle, cannot be captured by choosing the size of the parameter λ defining the relative weight), but are clearly specified in a hierarchical (or lexicographic) manner, which emphasises the overriding importance of price stability and also implies that policy should not be formulated in terms of an objective function which trades off inflation volatility against output volatility.