In other words, central banks were expected to pursue inflation targeting in a flexible, forwardlooking manner, and could delay achieving their target if such an action would minimize the possibility of more ominous outcomes in the future. But the pursuit of financial stability through monetary policy measures should not go any further.
The review of the ECB strategy in May 2003 clarified that price stability in the euro area is to be understood as a year-on-year increase in the harmonised index of consumer prices (HICP) below but close to 2%. Another fundamental aspect of the ECB’s monetary policy is that it aims to pursue price stability over the medium-term and not every quarter or every year.