I am confident that the Eurosystem, through its stability-oriented monetary policy strategy, will stand up to these challenges and be successful in maintaining price stability in the euro area.
If ﬁscal policymakers expect monetary policymakers to ultimately jump to the rescue, they might take the sustainability of public ﬁnances for granted and accumulate more debt. This would potentially put the central bank under even greater pressure further down the road, and it would be even harder for it to withstand this pressure.