While details often differ, key themes include a commitment to an explicit medium-term inflation objective and transparent communication about the economic outlook, the policy process, and how policy decisions relate to changes in economic conditions. It is important to recognize that by being more explicit about its objectives and more transparent and systematic about its decision-making framework, the central bank enhances its credibility.
The world economy as a whole is feeling the adverse effects, as tensions increasingly spill over from the financial sector to the real economy and from advanced economies to emerging market economies. In the case of the euro area, the latest survey data confirm that momentum in economic activity has weakened significantly, with sluggish domestic and external demand and tighter financing conditions.