By providing a stable framework for making and explaining monetary policy decisions, the strategy bolsters the credibility and effectiveness of the single monetary policy.
In designing the monetary policy strategy of the Eurosystem, the Governing Council also had to respect a number of practical issues and difficulties which arose because of the uncertainties created by the so-called shift of regime associated with the transition to Monetary Union. Where there were previously 11 open, generally small economies, there is now one large, relatively closed single currency area.