To help stabilize short-term funding markets, we lengthened the term and lowered the rate on discount window loans to depository institutions. The Board also established, with the approval of the Treasury Department, the Primary Dealer Credit Facility (PDCF) under our emergency lending authority in section 13(3) of the Federal Reserve Act.
Nevertheless, extra-euro area export volumes have been growing above their historical trend in recent years due to the persistently robust growth in foreign demand which, in turn, seems to be driven by globalisation forces. However, competitiveness is a key issue and important questions remain on how exposed the euro area and its members are to competition from emerging economies.