BIS Review 95/1997  -9-  The obvious candidate for an additional instrument in the open economy case is the exchange rate. I have already argued that monetary policy cannot be used to target the exchange rate. The issue here is whether there are opportunities to exercise direct control of the exchange rate. The obvious option is intervention.
There are, increasingly, reasons to expect the gradual economic recovery in the euro area to broaden and strengthen in the course of 2004. Recent data show that the recovery of the world economy is clearly making progress. The expansion of global trade and economic activity should support euro area exports.