but in the treaty it is nevertheless clear that the ecb can conduct monetary policy by means of asset purchases. and yet the germans are still concerned. they are rightly concerned about the possible side effects of qe : the creation of asset bubbles and reduced incentives for countries to initiate reforms and reduce their debt. however, the response cannot be to ask the central bank to internalise these unwanted consequences. we have a narrow mandate. instead, we need strong prudential policies and, in terms of fiscal policy, the strict application of the stability and growth pact. but was it necessary to humiliate the bundesbank? no such thing occurred. there was unanimity in the governing council that asset purchases are a legitimate monetary policy instrument. and then we discussed when to use it and whether the situation was bad enough to decide to use it. we will really try hard to explain that what we are doing is in the interest of the euro area, germany included. bis central bankers ’ speeches in your book, you talk about the isolation of the central banks. do you feel that strongly at the moment? central banks are independent, but they are not isolated. in europe, however, we need a coherent approach across monetary policy, fiscal policy and structural reform policy, as emphasised by president draghi at the jackson hole conference ( at the end of august [ ed. ] ). the understandable instinct of the governments is to respond to their voters. this is never easy and it becomes even more difficult in an environment of low growth and high unemployment. but our plea to the governments is to always remember europe ’ s common interest, because the actions of one affect all the others. that is why they must be coordinated. do you feel more mature, at the ecb, after last thursday? this is not about being mature, but about providing the right answers to a new situation, as the ecb has always done throughout the crisis. now, with asset purchases, we are like the other central banks, but with an instrument that is adapted to our specific environment, i. e. an environment which does not foresee a common fiscal policy. we are conducting qe in our own way. bis central bankers ’ speeches

growth returning and the price of oil has fallen, as has the exchange rate of the euro. and now monetary policy is sufficiently expansionary. all of the lights are green : 2015 could see significant growth and our surveys show that banks are passing on the reduction in interest rates to their customers more than they did in the past. monetary policy is even more effective when it is not leaning against the wind. bis central bankers ’ speeches even without national reforms? here at the ecb, we are absolutely convinced that whatever we do, it will not have as strong an impact if it is not accompanied by reforms. asset purchases are not an excuse not to implement reforms. the effectiveness of the purchases depends on these reforms. that said, the programme was designed to work and it is big enough to work. even though the amount of risk - sharing is very small – 20 % – with the rest staying with the national central banks? this is fully consistent with a single monetary policy because all decisions will be taken by the governing council. moreover, it has to be said that the fact that we have greatly limited the level of risk - sharing reflects the philosophy of the maastricht treaty : a centralised monetary policy with national fiscal responsibility. we have acknowledged the fact that the euro area is not a fiscal union. there are those who say we could have taken the first step in this direction. but this is a political decision which is for the governments to make, not us. at what point will qe stop? we will make purchases from early march until at least september 2016, i. e. 19 months, and shall continue until there is a sustained improvement in medium - term inflation. when it will end is therefore not an urgent issue, it will be assessed based on a range of indicators, including inflation expectations. could it end before september 2016? it will end only once we get a strong sense that inflation is converging towards 2 %. in germany, it is a widely held belief that last thursday, the ecb changed its monetary policy paradigm, that it is no longer the orthodoxy of the bundesbank, as promised at the time the euro was created. the german audience should acknowledge that it is not a question of a different monetary paradigm. we need to deliver on our primary mandate, which is price stability in the medium term. this is a strategy which we inherited from the bundesbank. only the instruments are new. this could not have been foreseen in 1992,