The ECB must develop into a truly European institution and we are making good progress in that direction. EMU has already proved to be a success in the financial markets. A unified, euro area-wide money market, which is essential for the smooth functioning of the Eurosystem’s monetary policy operations, was successfully established right from the start of Stage Three of EMU.
To quote Bernanke et al again, “By imposing a conceptual structure and its inherent discipline on the central  3  Hawke, 1972  4  Bernanke et al, 1999  3  BIS Review 79/1999  bank, but without eliminating all flexibility, inflation targeting combines some of the advantages traditionally ascribed to rules with those ascribed to discretion.”5 While we use the label “inflation targeting”, Lars Svensson6 uses a variation on that term which he regards as a more accurate description of the process – namely, “inflation forecast targeting”.