Mussa, M (2004), Exchange rate adjustments needed to reduce global payments imbalances:, in Dollar adjustment: How Far? Against What? C.F.Bergsten and J.Williamson (eds), Institute of International Economics, Washington, D.C. Obstfeld, M. and Kenneth S. Rogoff, 'The Unsustainable US Current Account Position Revealed', NBER Working Paper No. 10869, November 2004.
In this context, and also on account of the robust economic growth witnessed in 1999 and 2000, the still booming stock markets and the continued accumulation of excess liquidity, the Governing Council progressively increased the interest rates on the main refinancing operations by 225 basis points between November 1999 and October 2000 with the aim of maintaining price stability in the medium term.