Any ambiguity on this point would simply endanger the credibility, and therefore the effectiveness of monetary policy. Last but not least, I should like to make a few remarks with regard to the most frequently expressed criticism, namely that the Eurosystem is a secretive institution that does not meet the required standards of transparency and clarity.
Experience shows that if financial markets are uncertain about the future soundness of fiscal policy, at some stage long term interest rates are likely to increase. This tends to exert a negative impact on private investment and physical capital formation. Ultimately, unsound fiscal policies reduce production, output suffers a permanent loss and consumption possibilities are diminished in the long run.