ContextSpeech at the tenth anniversary conference of the Alliance for Monetary and Financial Stability; the Bundesbank is Germany's central bank within the euro system and stresses public trust in stable money.
Why it mattersNagel argues that confidence in steady prices must be rebuilt after the surge.
Problems raised
Inflation rose far above the 2% target.
Public trust in stable money has been tested.
Price stability must be anchored in people's minds.
Solutions proposed
Keep monetary policy focused on returning inflation to 2%.
Explain the importance of stable money to the public.
Work with academics and civil society to defend monetary stability.
