for monetary policy. we no longer have the luxury to look primarily to the flow of goods and services, as conventionally estimated, when evaluating the macroeconomic environment in which monetary policy must function. there are important – but extremely difficult – questions surrounding the behavior of asset prices and the implications of this behavior for the decisions of households and businesses. accordingly, we have little choice but to confront the challenges posed by these questions if we are to understand better the effect of changes in balance sheets on the economy and, hence, indirectly, on monetary policy.

i am pleased to say that with regard to the technical aspects of the changeover, cyprus is on the right track. numerous tasks involving many different areas of expertise have either been completed or are being completed : the selection of the designs for cypriot euro coins, the printing and distribution of notes, and the preparation and translation of comprehensive campaign material to make the people of cyprus familiar with the visual appearance and security features of the euro banknotes and coins, as well as with the modalities of the cash changeover. unquestionably, a well - informed public is crucial for the successful introduction of the new currency. drawing on the positive experience of previous changeovers, such as that of slovenia at the beginning of this year, various communication channels are being used. there are ten different publications in greek, turkish and english ; 350, 000 information leaflets are currently being distributed to all cypriot households ; media seminars have been organised. in all of this, we have paid particular attention to vulnerable groups. i personally was particularly impressed by the “ talking cards ”. following consultations with associations for the blind, we developed an audio file which allows visually impaired people to receive the relevant information on the cash changeover and the euro. the information campaign has been very intensive, not only in terms of financial and human resources, but also in terms of coordination efforts among all relevant parties, including the central bank of cyprus, the ecb, the cypriot ministry of finance and the european commission. after the changeover, we will evaluate the campaign, and i expect that the countries seeking to join the euro area at a later stage will be keen to learn from cyprus ’ experience. in the remainder of this year, some final preparations are still necessary. the delivery of coins, minted by the bank of finland, and the delivery of banknotes, provided by the bank of greece from the eurosystem stock, has started. and in a week ’ s time starter kits for the public will be distributed. the dual circulation of the cyprus pound and the euro will last one month. afterwards the euro will be the sole legal tender in cyprus, but cyprus pound coins can be exchanged for two more years and banknotes for ten more years at the central bank of cyprus. finally, let me reassure you that we are taking the concerns of the people of cyprus very seriously as regards possible unwarranted price increases in the context of the euro changeover. we have to monitor the situation carefully to ensure that prices are converted