Neither a purely monetary approach nor a purely non-monetary approach to the analysis of risks to price stability is able to deliver the best possible results for monetary policy. In the beginning, we were sometimes criticised for "not having decided" between a strategy clearly based on a purely monetary objective and one based on pure inflation targeting. However, I strongly believe that we have made the right decision, as we have only one primary objective: price stability. We have also decided in favour of a robust strategy in order to achieve our objective. This enables us to use a variety of approaches, involving different analytical frameworks and indicators, which are relevant for our primary objective of price stability in our decision-making process, and to cross-check the results. This approach provides the best possible basis for monetary policy decisions. So far, both pillars have given broadly similar indications with regard to the primary objective of price stability. However, this does not necessarily have to be the case. Let us suppose that both pillars were to point in different directions. Would it really be better if only one of these signals were available? This would undoubtedly make the decision process easier. But, seriously, faced with uncertainty - and that is an essential characteristic of the world we live in - I do believe that it is advantageous to take more than one approach into consideration and not to rely on a single analytical framework. That is basically the rationale for our two-pillar strategy.

The staff of the ECB and the national central banks have already been providing twice-yearly projections to the Governing Council since the start of Monetary Union. Starting with the December 2000 issue of the ECB Monthly Bulletin, these projections are now regularly made available to the public alongside other indicators and other forms of analysis underlying the ECB's monetary policy decisions. Let me emphasise that the publication of projections reflects the ECB's commitment to openness and transparency in sharing the information and analyses underlying its monetary policy decisions. Furthermore, it does not in any way change the ECB's monetary policy strategy. The projections are only one element of the second pillar considered by the Governing Council. Economic projections can only provide a partial summary of the state of the economy. They cannot possibly contain all the information needed to take appropriate policy decisions. In particular, the results do not in themselves reveal the nature of a shock hitting the economy. The appropriate monetary policy to maintain price stability should always depend on the specific circumstances and the nature and magnitude of a threat. For example, the appropriate response to a one-off increase in oil prices may differ from that given to a wage-price spiral, even if both have the same impact on inflation projections. Therefore, projections must always be supplemented by economic assessments and a detailed analysis of individual indicators. The ECB's strategy has sometimes been criticised for being rather complex. However, we are convinced that a simple approach would not have been appropriate.