Nonetheless, the outcome of our proceedings does not have such a direct impact on our counterparties’ preparations for Stage Three as the operational framework. Moreover, another reason for not yet having taken definite decisions regarding the monetary policy strategy is that the matter requires very thorough consideration. The Governing Council has already started with this discussion which will continue for some time.
There are a number of historical examples, in which loose policies and the neglect of negative spillovers – led to imbalances and disorderly adjustments in international markets. In the late 1970s, the US was criticised by some observers for conducting an overly loose monetary policy, which allegedly led to a decline of the US dollar to historical lows.