The euro’s central promise back then, though, just as it is today, was to be stable money for people in the euro area. That is why price stability is the primary objective of monetary policy. Since 1999, the average inﬂation rate in Germany has actually been even lower than the rate observed in the D-Mark era.
This has truly been a success story, even if the two periods are diﬃcult to compare. To make sure things stay this way, monetary policymakers need to reﬂect every now and then, and consider the merits of the strategy they are pursuing. The ECB Governing Council last adjusted its monetary policy strategy in 2003. The intervening period was eventful and marked by profound change.