And we need to agree that the IMF should be an independent, impartial umpire, ready to call out countries that are breaking the rules by imposing policies that distort trade flows, or policies that inhibit capital flows unnecessarily. What does this mean in concrete terms? Before getting into detail, there is a complication that we need to deal with.
There is still truth in what Wim Duisenberg, the first President of the ECB, once said: “Don’t ask for monetary policy to perform tricks it cannot deliver.” Therefore, the best contribution the Eurosystem can make to a lasting resolution of the crisis is to fulfil its mandate: that of maintaining price stability. The Eurosystem’s crisis measures have helped prevent the crisis from escalating.