Long-term inflation expectations in the euro area, whether based on surveys or extracted from financial indicators, have thus far been exceptionally resistant to sudden short-term price changes. We will ensure that inflation expectations remain impervious to short-term changes in inflation, even in the face of sharply falling inflation.
in order to make their financial systems more stable and efficient, as well as measures to improve the framework for domestic demand and to reduce the reliance on exports, are not only in the interest of these countries, but also in respect to global imbalances. Cyclical factors have further fuelled widening external positions.