Given strong monetary and credit growth in a context of ample liquidity, a cross-check of the outcome of the economic analysis with that of the monetary analysis confirms that upside risks to price stability prevail over the medium term. A further adjustment of interest rates was therefore warranted.
In the event of a crisis, there should be effective mechanisms for crisis management. And where necessary, this means going beyond coordination, because this is a matter of europäische Innenpolitik. We have also seen that maintaining stability requires common institutions that can react to events. The euro is the world’s second most important currency. It makes up 25% of the world’s foreign exchange reserves.