did in the recent stock market boom. in addition there are of course the deliberations of economic policy decision - makers, authorities and international institutions. the message i want to put across today is primarily that there are no simple solutions that would prevent a repetition of what we have been through. we must also realise that the spontaneous healing mechanisms in a market economy can take time to work. they probably need the support of better institutional rule systems, for example in accounting practice. at the same time, i would be cautious about intervening too much, for instance by complicating matters with rule systems or unduly detailed supervision by authorities. it is a question of striking a balance so that the sound forces in the economy are free to act while tendencies that may develop into a crisis are held in check. how this is to be achieved is something that market players and the competent authorities continuously have to consider and try out in the light of experience.

european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank and mr lucas papademos, vice - president of the european central bank, frankfurt am main, 5 march 2009. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to today ’ s press conference. we will now report on the outcome of today ’ s meeting of the governing council, which was also attended by the president of the eurogroup, prime minister juncker, and commissioner almunia. on the basis of its regular economic and monetary analyses, the governing council decided today to reduce the key ecb interest rates by a further 50 basis points. this decision brings the total reduction in the interest rate on the main refinancing operations of the eurosystem since 8 october 2008 to 275 basis points. overall, inflation rates have decreased significantly and are now expected to remain well below 2 % over 2009 and 2010. this outlook for inflation is due to the fall in commodity prices and diminishing domestic price and cost pressures, reflecting the severe downturn in economic activity. indeed, recent economic data releases and survey information add further evidence to our assessment that both global and euro area demand are likely to be very weak in 2009. over the course of 2010, the economy is expected to gradually recover. at the same time, available indicators of inflation expectations over the medium to longer term remain firmly anchored in line with the governing council ’ s aim of keeping inflation at rates of below, but close to, 2 % over the medium term. a cross - check with the outcome of the monetary analysis confirms that inflationary pressure has been diminishing. after today ’ s decision we expect price stability to be maintained over the medium term, supporting the purchasing power of euro area households. the governing council will continue to ensure a firm anchoring of medium - term inflation expectations, which supports sustainable growth and employment and contributes to financial stability. accordingly, we will monitor very closely all developments over the period ahead. let me now explain our assessment in greater detail, starting with the economic analysis. reflecting the impact of the financial market turmoil, the world economy has weakened substantially in recent months, affecting increasingly also emerging market economies. in a climate of heightened uncertainty, a severe fall in world trade volumes has been accompanied by a pronounced decline in domestic demand in the euro area. as a consequence, euro area real gdp contracted markedly in the fourth quarter