The third aspect of the monetary policy strategy, and one which I will discuss in some detail, is the ECB’s strategic framework. An important element of this framework is the “two-pillar approach” by which an economic analysis is cross-checked against an analysis of the development of monetary aggregates.
By taking a broad approach to the interpretation of economic conditions, the ECB’s strategy aims at adopting a robust monetary policy analysis in an environment that is typically uncertain. The first pillar of the ECB’s monetary policy strategy is the economic analysis.