Let me try and make this a little more concrete by asking you to think about an economy that experiences a positive supply shock, say an improvement in productivity or lower world prices for the goods that it imports. Normally, this type of shock would be expected to boost economic growth, increase asset returns and lower inflation, at least for a time.
The euro area is built on the principle of “monetary dominance”, which requires monetary policy to be single-minded in its focus on price stability and never to be subordinate to fiscal policy. “Monetary dominance” does not preclude communicating with governments when it is clear that mutually aligned policies would deliver a faster return to price stability.