not so much as a management instrument but rather as a basis instrument. minimum reserves, as a durable basis instrument, enhance the responsiveness of money demand to changes in interest rates, and thus can make monetary policy more effective. so as to guarantee the uniformity of the money market in the euro area, the monetary policy operations of the central banks in “ euroland ” should be settled on a same - day basis. for that purpose, a cross - border large - value payment system - known as target - is being set up. since target is attractive to the private sector as well, a disagreement has arisen about the conditions of access. in the main, it revolves around the conditions on which banks and central banks outside the euro area are to be granted intra - day credit. there are good reasons for arguing that participants in another monetary area cannot be granted the same terms of access in every respect as participants within the monetary union. it seems to be only logical that those who wish to benefit fully from the advantages of target will also submit to the monetary policy constraints imposed by the euro area. at all events, the monetary policy of the euro area must not be undermined by recourse to the target system. viewed as a whole, there are signs that the instrumental prerequisites for a euro monetary policy consistent with stability will soon all be met. although that is not a sufficient condition, it is certainly a necessary condition, for a stable euro. and the euro must be stable if it is to unfold in full its undoubtedly great potential for economic benefits. it is only as a stable currency that in future it will be able to play a major role as a global reserve and investment currency, alongside the dollar. and it is only as a stable currency that the euro will make its due contribution to the stability of the international financial system. iv but the stability of the international financial system also depends on developments outside europe. at the moment, after all, international organisations, governments, central banks and private financial institutions ( such as the iif ) as well are engaged in drawing conclusions from the dramatic course of events in south - east asia. some observers are debating these conclusions in the rather imprecise terms of a radical reform of the structure of the international financial system, with ideas ranging from the abolition of the imf and world bank - without replacement - to illusionary notions of a new bretton woods system or even a world central bank. i am sure that all these extreme positions

for these developments. it was staged in frankfurt – home of the bank deutscher lander – in 1952. this exhibition, which was very small but is still renowned to this day, also featured works by karl otto gotz, heinz kreutz and bernard schultze, the artists represented here. the bundesbank acquired such avant - garde works either from galleries or directly from the artist's studio. the managers responsible for the collection were up to date on current developments and maintained personal contacts with artists and gallery owners. the works of art purchased for the collection were presented to the central bank's staff in internal exhibitions, beginning in 1955. that year, 144 works by 39 artists were displayed. and staff were able to select pictures from this exhibition for their offices. it was not only avant - garde styles but also landscapes and still lifes which were represented at the exhibition. the idea was for there to be something for everyone. in subsequent decades and to this day, contemporary works have been regularly added to the bundesbank's art collection. after some seven decades, it provides an insight into developments in germany's art world since the 1950s. 2 / 3 bis - central bankers'speeches and it is presented in a variety of ways. in meeting rooms and offices as well as in the corridors of our buildings. to this day, staff can borrow works of art for their offices. this encourages employees and guests to discuss and debate art and society. art enthusiasts might also spot items from our collection when we loan pieces to museums. works from our collection are on display in the offices and rooms of the house of the euro in brussels. it is a joint representative office shared by the ecb and several euroarea central banks which was only recently inaugurated. last but not least, art tours and exhibitions, like this one here, are another way in which we display our collection. this is how we come into contact with the public. this is good for us, as central banks are often regarded as inaccessible and closed - off – even though most have been striving for openness and dialogue for years. the bundesbank's collection of modern and contemporary art is not, nor has it ever been, primarily about representation or about making rooms more beautiful. though, granted, this is a pleasing aspect. rather, the idea is to promote contemporary art and engagement with it. art challenges us and encourages discussion of our present and our society. 3 conclusion then, as now