The European Central Bank has pumped euro 69.3 billion ($62.37 billion) into financial markets today to enable setllement of trades in the wake of yeterday's terrorist attacks on the US.
But Mr Duisenberg said the ECB must stick to its medium-term monetary policy strategy as it deals with any economic consequences of yesterday's terrorist attacks on the US.
"It is important that we stick to our medium-term strategy while fighting the consequences in any way appropriate," Mr Duisenberg told the European Parliament monetary affairs committee.
"I believe it is essential that confidence of consumers and producers is maintained in the future and I believe it's essential that central banks, including the Eurosystem, exert an image that they can cope with this situation and that they can make a contribution to the maintenance of competence by pursuing, also in the future, a stability-oriented policy," he said.
He said the ECB does not react to short-term changes in economic indicators and sticking to its medium-term oriented strategy is the best contribution that it can make to boosting confidence in the monetary authorities.
He told journalists that he understood the panic reactions of some market participants to the US disaster, but he said there was no reason for panic.
"Central banks are there to provide reassurance," he said.