Joachim Nagel: Target achieved, but challenges still remain - monetary policy since the 2021 strategy review

Text of the 10th Bundesbank IAW Lecture by Dr Joachim Nagel, President of the Deutsche Bundesbank, at the Institute for Applied Economic Research (IAW), University of Tübingen, Tübingen, 9 July 2027.

The views expressed in this speech are those of the speaker and not the view of the BIS.

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1 Introduction

Ladies and gentlemen,

It's a great pleasure for me to be here in Tübingen and to be giving the 10th Bundesbank IAW Lecture. Many thanks to the Institute for Applied Economic Research and my colleagues from Stuttgart for organising this event.

Let me start with a quote.

I acknowledge that our strategy is complex. However, we have to recognise that we live in a rather complex economic world (-). It would therefore be impossible for the Eurosystem to conduct a successful policy by mechanistically following a simple rule (-).

The person who said this would have celebrated his 90th birthday today. It was Wim Duisenberg, the first President of the European Central Bank (ECB). Unfortunately, the Dutchman passed away back in 2005, not long after the end of his presidency. 

He played a key role in the successful establishment of the ECB's reputation as a credible and stability-oriented central bank. This success was due not least to the ECB's monetary policy strategy.