April 18, 2009

Today I would like to share with you my views on the roots of the current financial crisis, and the policy responses which aim to address it and to inspire a new sense of direction. The G-20, at its meeting a fortnight ago, sent a strong signal of reform that can provide the basis for a more resilient and stable global economy, in the period to come. Swift implementation of this important agenda will be key.I will explain the ECB’s response to the financial crisis. I will also note, en passant, how our policy compares with those of other major central banks.

In my view, differences in crisis management approaches between major central banks reflect differences in economic structures rather than conflicting views on fundamental principles. The ECB’s guiding principles are very simple and very clear. In the medium term, the ECB’s policy is geared towards preserving price stability in line with our objective and in so doing, creating the conditions for enduring financial stability. This policy is essential to revive a resource that has become much too scarce over recent months: confidence in the future.