For this strategy to work, monetary policy makers had to clearly communicate their objective, explain how they plan to achieve it and inform the public about their economic outlook and inflation forecast. As a Bundesbanker, I cannot resist the temptation to mention that some consider the Bundesbank to be a forerunner in this regard.
The Bundesbank always assigned great importance to explaining to the public the value of stable prices. We were - and still are convinced that a stability-oriented monetary policy ultimately depends on a public that not only has an abstract notion of stable prices, but also values the concrete advantages of a stable currency.