Furthermore, there are also new uncertainties and possibly fundamental changes in the functioning of the economy. Low interest rates, low inflation and persistently low growth put our economic theories and past empirical relationships into a real test. Facing these new challenges, it is sensible that the ECB should conduct a strategy review of our monetary policy frameworks.
Maintaining price stability is the primary objective of monetary policy, not only for the Eurosystem - according to the Treaty of Maastricht- but also for every central bank. Nowadays the only regulations central banks rely on in designing the operational framework of monetary policy are the monopoly of banknote issuance and reserve requirements.