Ten years of common monetary policy

Abstract

The European Central Bank was established on 1 June 1998 and has been pursuing an independent monetary policy for the past ten years, since January 1999. The Governing Council of the ECB set itself the objective of securing price stability in the euro area, defining this as the rate of general increase in prices remaining below 2% in the medium term. It has been successful in this objective in spite of strong shocks that have affected price developments from time to time. Inflation expectations have remained anchored in line with price stability. The monetary policy frame - work defined by the ECB in order to implement its monetary policy has ensured an effective steering of interest rates and liquidity in the euro area. The framework has also proven very flexible in the challenging context of the present international financial crisis.