1/6  BIS central bankers' speeches  In a context of monetary sovereignty, the imbalances translated into currency depreciation, international reserves depletion and high and rising inflation rates. With monetary policy fully available at national level, financial repression prevailed.
The policy prescription consisted of interest rate increases, credit growth targets, capital controls and the devaluation of the escudo, to contain domestic demand and restore export competitiveness. As a result of the adjustment strategy, the real value of wages, pensions and savings declined sharply and wealth was transferred from creditors to debtors.