When inflation strays from that target, we have one main tool to get it back to 2%—the policy interest rate. During times of crisis, we can use other tools, but usually we have one target and one tool. In practice, monetary policy is made more complicated by at least three realities. First, the influence of our policy interest rate on inflation is indirect.
We are in the final stages of negotiations and I urge the parties to reach an agreement as quickly as possible. 6. A few weeks ago, in Aachen on the occasion of the Charlemagne Prize, you launched the idea of a finance minister for Europe. How realistic is this proposal? When do you think Europe can become a fully fledged federation?