achieved anchoring of inflation expectations over the last eight years. 7 this in turn has contributed to low macroeconomic volatility in the euro area. 8 when inflation expectations are well anchored, temporary deviations of inflation from levels consistent with the central bank ’ s inflation objective are not expected to be long - lasting. as a consequence, macroeconomic shocks will have a smaller impact on inflation expectations and the evolution of inflation over time will be less persistent, with the result that inflation and economic activity will be more stable. it is certainly true that other central banks which put less emphasis on monetary analysis have also achieved low and stable inflation expectations and low macroeconomic volatility. however, it is important to bear in mind that the uncertainty faced by the ecb has been much higher than that faced by other more established central banks. our success in maintaining low and stable inflation expectations in a rather adverse macroeconomic environment is also due to the commitment to be continuously alert upon monetary trends built into our strategy by the money pillar. this brings me to the second question, on the criticism that our policy actions have not corresponded to the announced role of money in our strategy. i know that this objection is sometimes put forward by critical observers who argue that there is no direct correlation between our policy rate decisions and monetary developments. this kind of criticism does not discomfort me, because the relevance of the monetary pillar can anyway not be judged based on the simple bivariate correlation of policy rates with the growth rate of headline m3 ( or any other single monetary indicator ). first, such a simplistic approach cannot reflect the crucial role of cross - checking the information derived from the economic and the monetary analyses that is a key feature of our monetary policy strategy. second, it overlooks the broad - based and by no means mechanical character of the ecb ’ s approach to monetary analysis, which jurgen has also stressed yesterday. allow me to elaborate on the second point. monetary data are contaminated by noise at higher frequencies blurring the signal from their low - frequency movements which provide information about medium to longer - run inflation trends. the ecb ’ s monetary analysis aims to extract this low - frequency signal by assessing a large range of monetary indicators based on statistical tools and judgement in real time. since the signal extracted from the monetary analysis refers to the low frequency it will not change much from month to month. as a consequence, it will, by its very nature, normally not be closely correlated with individual policy moves, but will rather

amando m tetangco, jr : sustaining economic growth speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the map gen membership meeting ( gmm ) and first map economic briefing for 2015 with the theme “ innovative leadership for sustained growth? ”, makati city, 24 february 2015. * * * “ innovative leadership for sustained growth ”. strong, simple, spirited. it ’ s a confident statement and direct to the point, quite like what we have come to expect from map president, popoy del rosario. this theme, which map, has chosen for 2015 reminds me of that management principle – innovate or stagnate. “ innovate or stagnate ” is direct and simple to remember, and has a nice ring to it. but when you put “ innovation ” in the context of the broader concept of “ leadership ” ( as map has done here ), the resonance of that ring becomes deeper and applying it within our organizations becomes more challenging. while it is difficult to put into practice, “ innovate or stagnate ” is not impossible to do so. think of a company like google. our local telcos, our local conglomerates, even our banks. they constantly reinvent themselves to gain a bigger share of the pie or create new markets where there previously were none. all these, while taking care of their people. i have spent about two - thirds of my life as a central banker, with the last 10 years of that as the bsp governor. and i can tell you for a fact that, that mantra of innovation has never been more relevant in central banking than it has in the last eight years. why do i say that? simple. the 2007 / 08 global financial crisis ( or the gfc ) happened. the gfc led us to uncharted territory as it was a crisis unlike any in the recent past. let me illustrate. unlike in 1997 / 98, when the financial crisis originated from the emerging markets in asia, the gfc was a crisis that started from the advanced economy world. in 1997 / 98, central banks and economies had to fix exchange rate valuations and develop capital markets. painful. but nothing extraordinary because contagion was localized to the region. during the gfc recession was deep in the advanced economy world. and because of highly interconnected markets, that economic