The first pillar foresees a prominent role for money, while the second envisages the analysis of a wide range of other economic and financial indicators. The ECB devoted the first pillar of its monetary policy strategy to the appraisal of monetary developments and models that accord an important role to monetary and credit developments.
This recognises the fact that inflation is ultimately a monetary phenomenon and allows to take advantage of the stability that characterises the relationship between broad monetary aggregates and the price level in the euro area.