On the contrary, and I would like to stress this especially, EMU, among other factors, contributed to avoiding possible exchange rate or financial tensions in Europe. However, the terrorist attacks on the U.S. have further dampened global economic activity in 2001 and will postpone an economic rebound at least for one or two quarters in 2002.
Apart from the irreplaceable human loss, the direct effect of the terrorist attacks on the overall U.S. economy is likely to be limited. However, the indirect effects on private consumption, investment and savings could be more significant as confidence of consumers and business has already stated to fade. Due to increased uncertainty, investors have become more risk-averse. But policy makers reacted quickly.