But, as I just explained, the ECB’s price stability definition and policy horizon also allow for substantial flexibility in calibrating the policy response to shocks. Due to this flexibility, the ECB can  BIS central bankers’ speeches  5  pursue its long-term price stability objective without triggering socially costly short-run fluctuations in output and employment.
In this regard, it is in line with the key purpose of the Fed’s dual mandate. The ECB’s crisis response In the euro area crisis, the ECB’s capacity to react flexibly within its stable framework has been tested exhaustively. One challenge that has rendered this crisis particularly complex is financial fragmentation between Member States.