ECB's Trichet on economic and monetary issues
"For instance, it is the case in the UK, it is the case in Japan, it is the case in Canada, in Australia and New Zealand. Price stability is the goal of modern monetary policy around the world," Trichet said in testimony before the Committee on Economic and Monetary Affairs of the European Parliament.
"This also holds true for the US Fed. The mandate of the Fed is sometimes contrasted with that of the ECB, because it comprises not only a goal of price stability but also the goals of maximum employment and moderate long-term interest rates. Although the Fed's mandate does not establish a hierarchy among these goals, the Fed has made clear on a number of occasions that it considers price stability as a necessary condition for and the best contribution of monetary policy to achieving the highest level of welfare and sustainable economic growth."
Testimony before the Committee on Economic and Monetary Affairs of the European Parliament by Jean-Claude Trichet, President of the ECB, European Parliament, Brussels, 21 June 2006.
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