bank - based actions we have taken to enhance the flow of credit above and beyond what could be achieved through interest rate reductions alone. let me once again emphasise that we conduct all our policies in full continuity of our mission which started ten years ago, with foundations that have a much longer history and which are well anchored in the most stable monetary policy in europe – the pursuit of price stability. moreover, despite the need for the policy innovations to address the particular economic challenges of our times, all our measures are deliberately designed in a way that they can be unwound once any upside risks to price stability should emerge. i have also mentioned the existence of different approaches to crisis management of major central banks, which are related to differences in the structure of their economies and their institutional arrangements. let me reiterate that we are all united in purpose. it is absolutely essential to ensure that inflation expectations remain firmly anchored in line with price stability over the medium term. this will contribute to what is lacking most, namely confidence on the part of households and companies, and will lay the groundwork for a return to sustainable prosperity. right now the scarcest resource we have is confidence in the future. that is why in the present, very demanding, circumstances all necessary steps should be taken to strengthen confidence at all levels. this calls for bold yet solidly anchored responses. we must maintain the appropriate balance between the need to take immediate action commensurate with the gravity of today ’ s situation, and the equally undeniable obligation to return to a path that is sound and sustainable in the medium and long term. this is true for all policies : for monetary policy, for fiscal policies, and for executive branches ’ decisions to support the financial sector. i would warn against a common and unfortunate view suggesting that it is currently too early, or even totally inopportune, to envisage appropriate exit strategies. such a view is, in my opinion, plain wrong – for three reasons : first, because decision - makers ’ primary quality is that they always display “ sang froid ” and keep their composure, particularly in the most demanding and turbulent times. viewing today ’ s actions and decisions from a longer - term perspective is part of the necessary intellectual discipline. second, because nobody should confuse the existence of a credible exit strategy – which can be activated at the right moment – with the decision to actually embark on that strategy. often such confusion explains people ’ s fierce opposition to the mere existence of exit strategies

years is a short period of time in historical terms, but long enough to take stock of what has been achieved. the main achievement can be summarised in a single sentence : the euro is a very stable currency and all the institutional requirements are in place to preserve its solidity in the future. this is what defines success in monetary affairs. being here in munich, i would say that the promise that the euro will be “ stabil wie die mark ” has been kept. a glance at the inflation rates makes this clear : the average annual inflation rate in the euro area in the first eleven years of the euro will be around 2. 0 %, notwithstanding the tough challenges of successive oil and commodity shocks we had to cope with. this will even be slightly lower than the average annual inflation rate in germany in the 1990s. moreover, the priority given to price stability in the euro area has by no means been at the expense of employment. between 1999 and 2008, the number of people employed in the euro area increased by more than 16 million – significantly more than in the us during the same period. in the preceding period, from 1990 to 1998, the increase in employment was less than 6 million for the same time span. this can be seen as confirmation that a monetary policy oriented towards price stability is fully compatible with job creation. this is not to say that we have not to face up with new challenges since the crisis erupted, and that this is a time for complacency. but those figures put into perspective what has been achieved since the start of the euro. speaking in germany, and having been the first governor of the politically independent banque de france since 1 january 1994, i will say that we are all aware that assigning an independent central bank to the pursuit of price stability was both a historical necessity and a key ingredient in economic success. it is also well - known that the solid tradition of the deutsche bundesbank sprung out of the painful experiences of the more distant german monetary history in the first half of the 20th century, in particular the german hyperinflation of the early 1920s, which has left deep scars in the collective memory of both germany and europe. in a sense, the german experience between the two world wars demonstrates how painful deviations from price stability can be – both in economic and in political terms. firm lessons were learned from history in germany, in particular in the period of the great inflation of the seventies, where the bundesbank, and a