But for any central bank, the strategy to ensure price stability needs to be symmetric. In other words, inflation should be neither too high nor too low. If we were to react only to high inflation, and ignore low inflation, citizens’ expectations would change – and we would risk losing the credibility we have established since 1999.
I very much appreciate the opportunity to speak to, and discuss matters with, such a distinguished audience from the business sector. My remarks today are grouped into three sections. I would like to start with some comments on the economic recovery in Germany and in Europe.