The clear distribution of responsibilities between monetary and government authorities enhances the credibility of monetary and economic policies in Europe. The “policy mix” resulting from monetary and fiscal policies will be an outcome of these policies rather than our initial objective. This assignment of responsibilities increases transparency and facilitates accountability.
Under normal circumstances the joint interaction of all policies would be optimal provided that the basic allocation of instruments and objectives is respected and that policy-makers focus on their main objective. The Eurosystem is always ready to engage in an open exchange of views and information with policy-makers. Moreover, the public and governments are kept well informed about the ECB’s objective and strategy.