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Interview with Mr Jean-Claude Trichet, President of the European Central Bank, and the
German magazine FOCUS, conducted by Messrs Uli Dönch, Thomas Zorn and Bernd
Johann on 19 January 2010 and published on 25 January 2010.
* * *
FOCUS: Mr President, the rate of inflation in the euro area is close to zero. You have
done a good job – are you now out of work?
Trichet: As you know, the latest available figure is 0.9%. What counts is price stability in the
medium term. And from that point of view, my colleagues and I are proud to be able to tell
the citizens of Europe that they have a credible and stable currency. We promised them that
the euro would be as stable and credible as individual national currencies had been earlier.
And we have kept our word.
FOCUS: How great is the risk that you will rest on your laurels?
Trichet: You need have no fears in that respect. We will continue to remain alert. At a central
bank, there is never a time for complacency.
FOCUS: At the beginning of your period in office in 2003, your policy of maintaining
price stability caused you to be criticised as a “prolonged arm” of the Bundesbank.
Did this hidden praise help you, or did it do more harm than good?
Trichet: In my own country, I was seen as the “strongest advocate of the strong franc (‘franc
fort’) policy”. But the monetary policy of the Banque de France was backed by the people.
Historically, what matters is that all future euro area countries, including France and
Germany, cooperated very closely from the very outset to ensure convergence. Today,
people throughout Europe are convinced of the importance of price stability. And they are
also aware of the fact that being addicted to inflation is like being addicted to a drug that over
time has extremely negative effects: stagnation and the destruction of jobs.
FOCUS: Nevertheless, many experts are expecting prices to rise significantly again in
the near future ...
Trichet: We have made it very clear that we always take the decisions necessary to
guarantee price stability over the medium term: an inflation rate below, but close to, 2%.
Observers and market participants are fully aware of this. It is precisely because of the
challenges posed by price stability that we stand ready for action at all times. I call that
“credible alertness”.
FOCUS: At the moment, the markets are addicted to cheap money – to low interest
rates. Politicians, bankers and stock market traders have already become too used to
this situation, and as a result the risk of inflation is on the rise. How do you intend to
change this?
Trichet: You can be sure that the European Central Bank will continue, as before, to maintain
price stability. Keeping inflation expectations solidly anchored – in line with our definition of
price stability – protects us against the materialisation of both inflationary and deflationary
risks. We succeeded in avoiding deflation at the peak of the crisis. You can be sure that the
needle in our compass will always point towards price stability.
FOCUS: How quickly have you taken action during the crisis?
Trichet: As I have said, alertness is of the essence. On 9 August 2007, for instance, ...