Introduction

On 1 January 1999 a new currency, the euro, was launched and a new institution, the Eurosystem,

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took over responsibility for the single monetary policy in the euro area, which is one of the largest developed economic areas in the world.

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However, the euro area is not only large but it is also a heterogeneous economic area since it comprises individual countries with different economic and financial structures. With regards to the size and the heterogeneity of the euro area, the creation of a single currency and a single monetary policy has faced extraordinary challenges, among them the design of suitable instruments and procedures, i.e. of a suitable operational framework, for the conduct of monetary policy.