reform priorities : completing the banking union, implementing growth - friendly fiscal consolidation, and structural reforms in labour and product markets. i have little doubt that all these reforms are beneficial and trust - enhancing, even though some of them may be opposed by vested interests or entail adjustment costs in the short term. our common responsibility for the euro area strengthens the case for reform. as i said recently in berlin, it is never the case that sound economic policies are good for some in the euro area but not for others, even though they are sometimes portrayed in that way. a great deal of progress has been made, but more needs to come. let me conclude by again quoting curzio : “ the ems crisis could have marked the end of emu. instead, it sparked efforts to acquire sufficient institutional capital to support confidence in the new european currency ” ( p. 213 ). the crisis has identified some weaknesses in our european construction. but i am convinced, like curzio, that together we will be able to repair these weaknesses and emerge from the crisis with a stronger europe. thank you for your attention. references kohn, d. ( 2013 ) : “ the interactions of macroprudential and monetary policies : a view from the bank of england ’ s financial policy committee ”, speech at the oxford institute of economic policy, 6 november. issing, o. ( 2006 ) : “ the ecb ’ s monetary policy strategy : why did we choose a two pillar approach? ”, intervention at the fourth ecb central banking conference “ the role of money : bis central bankers ’ speeches money and monetary policy in the twenty - first century ”, frankfurt am main, 10 november 2006. posen, a. ( 2010 ) : “ when central banks buy bonds : independence and the power to say no ”, speech presented at barclays capital 14th annual global inflation - linked conference, new york, 14 june. trichet, j. - c. ( 2006 ) : “ the role of money – money and monetary policy in the 21st century ”, panel intervention at the fourth ecb central banking conference “ the role of money : money and monetary policy in the twenty - first century ”, frankfurt am main, 10 november 2006. bis central bankers ’ speeches

mario draghi : money and monetary institutions after the crisis speech by mr mario draghi, president of the european central bank, at the conference on “ money and monetary institutions after the crisis ”, in memory of curzio giannini, bank of italy, rome, 10 december 2013. * * * summary central banks should continue to focus primarily on what they can and are mandated to achieve, which is price stability over the medium term. delivering on their mandate is the only way for central bankers to maintain public trust. pursuit of this mandate must be backed indirectly by public preferences, seen from a longerterm perspective. the actions undertaken by the ecb have not represented a departure from the ecb ’ s mandate but rather the opposite, namely its pursuit by all the means demanded by the situation. it is now crucial to complete the reform agenda at european and national level. with this agenda there can be no place for withdrawing into nationalism and protectionism. * * * introduction ladies and gentlemen : i very much appreciate having the opportunity to intervene in this conference, not only because it honours curzio giannini, but also because the issues that were close to his heart have turned out to be fundamental questions concerning the role of central banks in the postcrisis environment. the morning session has touched upon topics of vital importance for central banks. i would summarise them along two main lines. first, should the objectives ( though not necessarily the mandate ) of central banks be broadened? second, and related, how can central banks retain and increase public trust and preserve their legitimacy and independence? although these are issues that affect all central banks, i will naturally speak from the perspective of the ecb and our specific institutional context. the objectives of monetary policy claudio borio has presented a thought - provoking paper on the question of whether central banks had too narrow a focus in the decades preceding the global financial crisis. he now asks whether they should widen their horizon, in particular towards addressing financial imbalances. claudio first documents that there is a financial cycle of credit booms and busts that overlaps with the more usual business cycle, but which has a longer duration, in particular in the buildup phase. although not always easy to detect, this cycle is often characterised by the interplay between soaring real estate prices and easy credit, and both are in principle observable. second, claudio argues that monetary policy ( possibly in combination with other policies such as macro - prude