The subsequent correction following the collapse of the dotcom boom, allied to heightened geopolitical tensions, then triggered the most critical and sustained period of economic and financial uncertainty witnessed in decades. This persisted until early 2003, and while uncertainty has unwound considerably since, the sharp rise in oil prices has led to uncertainty returning periodically in the interim.
On top of all this, we have also seen a sizeable appreciation of the euro since 2002, particularly against the dollar, taking it back to the level prevailing at its initial launch. From that short outline, it is clear that the economic and financial environment of the past seven years has provided a stiff test of the single monetary policy.