Second, in order to go along with the lifting of the foreign exchange controls, the central bank and the government had to implement an extensive deregulation of the domestic money and capital markets. This meant abolishing numerous directed credit facilities, and extensive commercialization of government debt in the framework of capital market reform.
Ladies and gentlemen, let me briefly summarise what has been said so far: I have explained to you why I consider the low interest rate policy to be necessary and the risks it creates for financial market stability and the sustainability of fiscal policy. One thing, however, is crucial: there are limits to expansive monetary policy.