with dutch as wim and i, here is the english translation : “ who taught wim duisenberg maths? - well done, teacher. ” but, to be serious : a rule - bound approach entails too great a knowledge of the relationships involved for us to be able simply to hand over monetary policy to a computer. if need be, the computer would have to be reprogrammed if the structural relationships and laws changed over time. and considering that every player in the markets anticipates the potential fallibility of mechanistically applied rules, such rules are beset by credibility problems of their own from the outset. rules are naturally important and useful for orientation purposes, but they must not degenerate into automatic responses. they cannot be a substitute for the responsibility of decision - makers in a concrete situation - although they can provide an orientation for such responsibility. incidentally, the bundesbank has never applied its monetary targeting policy in mechanistic fashion, especially not during the nineties. and the experience it gained of that approach was excellent. the point of properly understood strategies - not wrongly understood automatic responses - is to provide longer - term orientation. they should certainly have a binding character - in the sense that the central bank is required to justify the extent to which actual decisions are compatible with the strategy. that gives rise to transparency. the ship needs both a course and a helmsman. both together result in credibility. has not the strategy of the governing council already contributed substantially to the accumulation of credibility by the euro? i, at all events, do not rate the criticism voiced here and there about the last interest - rate decision as being negative. after all, it gave rise to a need for the central bank to justify how far the decision was compatible with monetary growth. that indicates to me that the strategy has already attained a major objective. a debate on that point cannot but foster the accumulation of credibility by the euro. a different matter is the, in my view, mistaken criticism that the decision constituted a paradigm change. that is unequivocally wrong. certainly, there were many arguments to be weighed up. but the crucial yardstick was the long - term safeguarding of internal stability. that was and remains the main thing that monetary policy can contribute to the movement of growth and stability. one of the fathers of the reichsbank, the member of the reichstag from mainz, ludwig bamberger, rightly said ( back in

would agree that no monetary policy strategy should be set in stone. instead, it should adapt to changing circumstances, and circumstances have certainly changed over the past 18 years. in this sense, our current review should translate this strategy to the challenges of our time. 3 personal relationship otmar, with your firm commitment to monetary stability and central bank independence, based on your strong academic reasoning, you should serve as a role model for every central banker. and you have personally given me guidance and advice on numerous occasions as well. 1 / 2 bis central bankers'speeches even in my days as a student, i became well acquainted with your perspective by studying your textbooks. i preferred your books to others because they offered better explanations of the intricate interrelations of monetary policy and also introduced the reader to the challenges and issues of practical monetary policymaking. many years later, i had the privilege of working together with you personally. in the aftermath of the global financial crisis, you chaired the working group neue finanzmarktarchitektur. this working group was convened by chancellor angela merkel and was better known as the issingkommission. its task was to prepare the german agenda for dealing with the financial crisis for a packed series of g20 summits over the subsequent years. it was a very intensive and productive time that i remember vividly. today, i enjoy being able to exchange ideas about monetary policy and central banking with you – sometimes as a sparring partner. when we converse over the phone, i feel that we see many things from a very similar perspective, but what makes these exchanges so valuable and engaging is the sharpness of your intellect. and for this i offer my sincerest thanks. 4 conclusion although you already celebrated your 85th birthday a few weeks ago, i would nevertheless like to take this opportunity to wish you many happy returns as well as continued good health and vitality. your word carries weight beyond our country ’ s borders, even to this day. i hope that we will continue to hear your clear, credible, and authoritative voice in policy debate for many years to come. thank you and all the best! 2 / 2 bis central bankers'speeches