Regarding the first issue, it is straightforward to recognise that non-standard measures ultimately serve our primary objective, once the medium term orientation of our strategy is recognised. The medium-term orientation acknowledges the futility of attempting to fine-tune price developments over very short periods of time This is due to long and variable lags in monetary policy transmission and to inevitable price shocks.
From the very outset, the ECB’s monetary policy strategy acknowledged that it is neither feasible nor desirable for inflation to be targeted on a short term basis.