The economic boom of the 1960s and the bitter inflationary experiences of the 1970s eventually led to an increased focus on price stability as the goal for monetary policy. We developed a better appreciation that keeping inflation low, stable, and predictable is the best contribution a central bank can make to the economic welfare of a nation.
As you know, this is my last testimony before your Committee. I have had the privilege to preside over the ECB for the past five years, guiding it from its very inception through a number of crucial - and successful - stages, such as the introduction of the euro in 1999 and, three years later, the euro cash changeover.