Secondly, economic integration advanced considerably over the following decades, fostered not only by trade interdependence, but also by the web of social linkages created through business, tourism or educational exchanges. And, thirdly, there is a growing economic consensus moving away from active demand management policies towards a more medium-term orientation, based on structural, supply-side-oriented policies with a monetary policy strongly geared towards price stability.
I will start with issues related to the narrow corridor; thereafter, I will comment on the level of the interest rates. With respect to the interest rates on the ESCB’s standing facilities, which are designed to form a corridor for movements in short-term money market rates, the Governing Council had to consider two aspects. First, it needed to signal clearly its monetary policy intentions.