The European Central Bank is facing new challenges in setting monetary policy due to uncertain economic conditions. These challenges include lower interest rates, changes in the relationship between inflation and unemployment, and incomplete financial stability measures in the euro area. To address these issues, it is recommended that the ECB update its definition of price stability to target core inflation around two percent per year. This approach is seen as more feasible and easier to communicate compared to other proposals. It is also suggested that monetary policy should not target financial stability directly, but instead use more specific tools to manage risks in different countries.