The publication of this definition also provides the public and the European Parliament with clear criteria for assessing the success of the single monetary policy, thereby rendering the Eurosystem and its policy both transparent and accountable. The Eurosystem defines price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below 2% to be maintained over the medium term. The wording “below 2%” clearly delineates the upper boundary for the measured rate of inflation that is consistent with price stability. At the same time, in this context, the use of the word “increase” implies that deflation – i.e. a prolonged decline in the price level – is not consistent with price stability. The price stability objective must be achieved both in the medium term and the long term. On the one hand, this objective has been set in order to take into account the variable and somewhat unpredictable time lags affecting monetary policy. On the other, it is a reflection of the possible emergence of short-term volatility in prices resulting from non-monetary shocks that cannot be controlled by monetary policy. Stability-oriented monetary policy strategy of the Eurosystem The monetary policy strategy of the Eurosystem is geared towards price stability within the euro area and can basically be described as a two-pillar strategy. The first pillar assigns a prominent role to money as defined by the broad monetary aggregate M3. There is wide consensus that medium-term inflation is actually a monetary phenomenon.

The application of distributional accounts is even more significant during economic crises like the COVID-19 pandemic, where both the effects as well as the mitigating policies can differ significantly across heterogeneous households. The OECD, Eurostat, IMF, UN, and the World Bank joint effort is to provide household distributional information, in line with the national accounts’ totals, on the dimensions of income, consumption and wealth. The new G20 Data Gaps Initiatives have as well incorporated recommendations. Fintech and innovation Technological changes are transforming the financial sector and the economy in general, offering payment services, including cryptocurrencies, international remittances, and cross-border payments and credit. With market innovations also come risks. Central banks should therefore promote the global adoption of a revised classification of economic activities that takes greater account of financial technology service providers, supporting the IFC's recommendation to revise ISIC at the UN level. When new entrants fall outside the perimeter of regulation, it can be difficult to assess risks, including threats to resilience and financial stability. The advances in regulation can be leveraged for statistical purposes and should allow us to move forward in measuring the services offered by these non-bank or unregulated financial intermediaries. As regulation moves into focus into these areas we should develop, for instance, financial inclusion indicators based on the digital financial  3  services offered by Fintech companies. Cryptoassets and digital currencies are another area where regulation can be leveraged for statistical purposes.