The enforcement of the Pact must be ensured, and pressure must be raised to consolidate during economic expansions - and there is one in the offing right now! 5. Conclusion  What contribution can central banks make? In a nutshell, they can deliver price stability.
European monetary union is designed to keep the price level stable and thereby to provide conditions conducive to employment and economic growth. Monetary policy in turn is facilitated by flexible markets. In an environment of flexible product and factor markets, interest rates can stay low for a longer time during an upturn. Strong demand does not necessarily translate into an increasing price level.