1/5  BIS central bankers' speeches  But no one could have foreseen that the environment facing monetary policy globally was soon to abruptly reverse: that inflationary forces would turn into deflationary ones.
In all advanced economies, this called for a new paradigm for central banking, which comprised two elements: the determination to fight deflation as strongly as inflation, and flexibility in the choice of instruments to do so. In our case, the ECB has proven that it will not accept threats to monetary stability caused by unfounded fears about the future of the euro.