took office has been that most of these issues are intellectually demanding and rewarding at the same time. describing his own personal experience, ben bernanke has emphasised that one common theme in all these fields is to realise that the “ devil is in the institutional details ” and to appreciate this dictum is the foundation of all serious policy work. this is certainly true and arguably the thin line academics rapport du conseil d ’ analyse economique : evolution recente du commerce exterieur francais, nov. 2006. have to cross to become serious policymakers. and, here, our academic background might be of some help in that we have learned to grasp the underlying economic content of multifaceted and complex issues. but it is certainly not enough to guarantee coherent and appropriate policy decisions. but these challenges are common to everyone taking up a political job without former practical experience in this area. one final remark : another aspect where my former academic life did not fully prepare me to meet current challenges has to be mentioned. and this aspect is not common for most of my academic colleagues that have now turned into policymakers : the bundesbank, an institution of roughly 11, 000 employees, is an institution in transition. the adjustment to the single monetary policy of the eurosystem has meant a cultural watershed to the bundesbank. having formerly been the anchor of the european monetary system, the bundesbank has been facing necessities of adjustment and workload involved has been more wide - ranging than it has been for other national central banks of the euro area. we are currently well under way in restructuring and refocusing our medium - term strategy. obviously, change management is something typically not included in economics i or ii courses – so i had to learn on the job how to cope with all the difficulties that this entails. admittedly, some of the tensions and issues that are inherent in policymaking for a large institution which is confronted with a massive shift in external conditions are the price to be paid in comparison with a purely academic life. on the other hand, working together for a public good like price stability is worth paying such a price for.

– academics and policy - making. when it comes to core monetary policy issues in my current job, my professional background is clearly something i benefit from. our models and forecasting techniques are quite familiar to me from my former academic life. the way monetary policy has evolved over the past few years towards more transparency and accountability, the role of monetary policy strategies in that respect, and the eminent role of communication has been heavily shaped by academic research. and in most of these issues my academic background provides a solid base to grasp the key issues at stake. however, there are some major aspects of monetary policy decision - making that are not reflected in undergraduate or graduate courses. the most important aspect deals with the analysis of the current stance. the way the multitude of economic data is transformed into a coherent narrative and perspective is something that is not taught at universities. partly, there is good reason for this, as this is a hands - on business where practical experience is inherently essential. but all of us involved in the monetary policy process must try to synthesise a range of disparate information, including official data, anecdotal evidence, and qualitative developments, to construct a “ narrative ” about how the economy is evolving : what forces are determining economic activity now, and what do they suggest for the future? fortunately, before becoming president of the bundesbank, i was a member of the german council of economic experts, better known as the “ five wise men ”. here, i became pretty familiar with the thousands of economic statistics and with the necessary balance between theory and a good dose of judgment in forming an adequate assessment of the current stance of the economy. moreover, my time at the council helped me to shape my thinking about a host of other economic issues, such as social security, labour markets and issues of taxation. this is not to say, however, that my former profession has equipped me with all the knowledge necessary for central banking. central banks cover fields that are far more wide - ranging than the core monetary policy principles just outlined. we deal with financial stability issues, have responsibilities in the banking supervision process, are responsible for the proper functioning of the payment system, distribute cash services to banks, companies and households, and play an important role in international fora like the imf and the different g - settings. here, my learning curve over the past three years has been quite steep. arguably, not every aspect in that regard is equally interesting to me, but my experience since i