As to the contents of the publication: Chapter 1 summarises the institutional aspects most relevant for an understanding of the ECB's monetary policy; Chapter 2 provides an overview of the main economic and financial structures of the euro area economy; Chapter 3 presents and explains the monetary policy strategy of the ECB; Chapter 4 explains how monetary policy decisions are implemented using the monetary policy instruments available; and Chapter 5 illustrates how monetary policy was conducted in the first two years of Stage Three of Economic and Monetary Union (EMU).