D.  Monetary policy:  –  internal and external stability:  –  10    Price stability = primary objective;    = (necessary but insufficient) condition for stable exchange rate and balanced current account.
inflation vs. deflation   deflation no immediate concern in the euro area;    HICP in January 2011: 2.3% (energy, food and taxes); HICP in February 2011 (flash): 2.4%    Eurosystem forecast (March) for 2011: between 2.0% and 2.6%;  BIS central bankers’ speeches  –    Inflation expectations firmly anchored: below, but close to 2% over the medium term;    Risk: commodity prices (wheat, oil, etc.