the ecb. more tasks have been added to our agenda since the financial crisis. one is the statutory mandate given to the bank in 2013 to contribute to financial stability within germany. in other words, it is our job to identify risks to financial stability in germany, issue warnings, and prepare recommendations for the german financial stability committee on how such risks can be avoided. because one of the main lessons we learned from the financial crisis was that it is not enough to look only at microprudential stability – it was also important to monitor the functioning and performance of the financial system as a whole at all times. or, to use janet yellen ’ s words : before the crisis, “ we looked closely at the trees and not as intently as we should have at the forest ". 3. creating stability ladies and gentlemen, though the playing field in which the bundesbank operates has been in constant flux, the main thrust of its monetary policy stance has remained steadfast : our sights are – and always will be – set on stability. this shapes the views i express in the ecb governing council, and it also shapes the views of my bundesbank colleagues in the different eurosystem working groups. it is simply the nature of things that debate in the eurosystem ’ s committees can become heated on occasion, particularly in times like these, which present us with monetary policy challenges. but it is at precisely these times that i believe there should be intense debate about the right path for monetary policy. and i am also certain that this debate is enriched by the many different perspectives and experiences the eurosystem ’ s central banks bring to bear. but of course, this doesn ’ t mean that every decision results in the outcome i would like. after all, that ’ s not how a federal system works. i think mr scholz will back me up on this point. feeble inflationary pressure is currently posing a monetary policy challenge for the governing council. since 2013, inflation has been lower than the governing council ’ s medium - term inflation rate target of close to, but below, 2 %. this is due to a wide variety of factors. in addition to plummeting oil prices, the economy was hit by the most severe recession in post - war history. weak economic activity in the euro area was compounded by the adjustment measures taken by the crisis - stricken countries to regain competitiveness and reduce debt levels. the ecb governing council found itself forced to continuously ease financing

bundesbank a model of success – and a template for the ecb ladies and gentlemen, i think we can take some pride in the way the bundesbank ’ s success, notably in the 1970s and 1980s, inspired many countries to also make their central banks independent and give them a clear price stability mandate. this trend culminated in the establishment of the european central bank, whose independence and clear price stability mandate took after the bundesbank. that was undoubtedly a special tip of the hat to the bundesbank and its work. however, given the high esteem in which the deutsche mark was held and the central role which the bundesbank played in monetary policy matters in europe with its credible stability orientation, it was clear that the introduction of the euro was also a watershed for the german central bank. because the advent of stage three of economic and monetary union saw decision - making powers over monetary policy pass to the ecb ’ s governing council. so where the bank had once been solely responsible for the deutsche mark, it now had a shared responsibility for the euro. the bundesbank president, just like the governors of the other euroarea central banks, has a seat and one vote in the governing council. and this co - responsibility is no less important in a federal system which is constantly striving to gauge the right monetary policy path. incidentally, co - responsibility for the euro also means putting monetary policy into practice. when banks and savings banks in germany need central bank money, they turn to the bundesbank. because in the eurosystem, it is the national central banks which are tasked with implementing monetary policy operations. besides operationalising monetary policy, the bundesbank also performs a number of other important tasks, like managing the cash supply. and 15 billion banknotes were handled by our branch staff last year, checked for fitness and replaced, if necessary. 4 / 8 bis central bankers'speeches cashless payment operations are another one of our key tasks. in tandem with our partner central banks – banca d ’ italia, banque de france and banco de espana – we are responsible for the backbone of european payment and securities settlement operations : target2 and target2 - securities. day in, day out, we process payments in target2 that are worth something like 1. 7 trillion euro. and together with bafin, the federal financial supervisory authority, we supervise around 1, 800 german financial institutions and play a role in european banking supervision under the aegis of