In addition to the Eurosystem’s common measures, some national central banks have conducted certain operations to address bankspecific solvency problems in their respective countries. The “forward guidance” introduced this year can be regarded as the newest addition to this list. Forward guidance refers to regular statements on monetary policy, which for the moment have been aimed at increasing the efficiency of accommodative monetary policy.
Let me take you through some of the other key decisions that we made in 1991, and the rationale behind our choices, as we set out the details of our framework. First of all, why did we choose the consumer price index (CPI) as our measure of inflation?