the ecb in particular. more specifically, the conduct of monetary policy had to take into account an increasingly large number of uncertainties while liquidity management by the central banks had to adjust flexibly to implement monetary policy decisions in an environment of distorted money market segments. the flexibility of the eurosystem ’ s operational framework has proved invaluable during the crisis, and it will allow the eurosystem to adjust, if necessary, to a possibly change in the financial landscape. of course, the recent sovereign debt crisis in some euro area counties poses additional challenges, also for the eurosystem. in this regard, it is essential that prudent fiscal and economic policies are employed in all euro area countries. this will reduce bank ’ s current over - reliance on central bank funding and facilitate the ecb ’ s task of delivering price stability. in this context, i would like to emphasize that the central bank must remain vigilant in order to ensure that its enhanced intermediation role during crisis times is not abused by fiscal authorities and market participants, as it remains essential that they strictly fulfil their own responsibilities. this approach means that market participants must also adopt a pro - active liquidity management policy and accept trading with each other again. it also implies that different public authorities, like regulators and governments, should also take the necessary measures to stabilise the financial system, so that it can play its part in the recovery of activity and employment. thank you for your attention. references cassola, n., a. durre and c. holthausen ( 2010 ) : “ monetary policy operations – experiences during the crisis and lessons learnt ”, in approaches to monetary policy revisited – lessons from the crisis, proceedings of the sixth ecb central banking conference, 18 – 19 november 2010, p 280 – 321. eisenschmidt, e. and c. holthausen ( 2010 ) : “ the minimum liquidity deficit and the maturity structure of central banks ’ open market operations : lessons from the financial crisis ”, european central bank working paper 1282. gray, s. ( 2011 ) : “ central bank balances and reserve requirements ”, imf working paper wp / 11 / / 36. marques - ibanez d. and l. gambacorta ( 2011 ), “ the bank lending channel : lessons from the crisis ”, economic policy 26, 66, 137 – 182. bis central bankers ’ speeches

eurosystem staff projections published in december 2009, the range for real gdp growth in 2010 is slightly narrower, while for 2011 the range has been revised slightly upwards, reflecting notably stronger activity worldwide. the governing council continues to view the risks to this outlook as broadly balanced, in an environment marked by continued uncertainty. on the upside, confidence may improve more than expected, and both the global economy and foreign trade may recover more strongly than projected. furthermore, there may be larger than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. on the downside, concerns remain relating to a stronger or more protracted than expected negative feedback loop between the real economy and the financial sector, renewed increases in oil and other commodity prices, the intensification of protectionist pressures and renewed tensions in some financial market segments, as well as the possibility of a disorderly correction of global imbalances. with regard to price developments, euro area annual hicp inflation was 0. 9 % in february 2010, according to eurostat ’ s flash estimate, after 1. 0 % in january. inflation is expected to be around 1 % in the near term and to remain moderate over the policy - relevant horizon. in line with a slow recovery in domestic and foreign demand, overall price, cost and wage developments are expected to stay subdued. in this context, it is important to emphasise that inflation expectations over the medium to longer term remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. this assessment is also reflected in the march 2010 ecb staff macroeconomic projections for the euro area, which foresee annual hicp inflation in a range between 0. 8 % and 1. 6 % for 2010 and between 0. 9 % and 2. 1 % for 2011. compared with the eurosystem staff projections published in december 2009, the range for 2010 has been adjusted marginally downwards, while the range for 2011 has been adjusted slightly upwards. risks to this outlook remain broadly balanced. they relate, in particular, to further developments in economic activity and the evolution of commodity prices. furthermore, increases in indirect taxation and administered prices may be greater than currently expected, owing to the need for fiscal consolidation in the coming years. turning to the monetary analysis, the annual growth rate of m3 turned slightly positive in january 2010, rising to 0. 1 %. this reflects mainly a base effect and confirms the assessment