Citizens also expect from Europe common answers to the common challenges which all euro area countries are facing. In a context of global competition and ongoing fiscal consolidation, euro area countries should join their forces. Given that they share a single currency, they have even stronger reasons than other countries to work together.
Thus, a monetary policy strategy that monitors closely monetary developments and measures them against a medium term reference growth rate may – as an important side effect – also contribute to limiting the emergence of unsustainable developments in asset valuations. Asset prices, by themselves, are not a suitable goal for monetary policy.