•  Unlike other currencies that were devalued during the mid-1990s and late 1990s, the drachma exited a unilateral peg and entered a systems’ arrangement, benefiting from the credibility of the ERM. •  Fiscal tightening continued following the devaluation. The fiscal deficit, as a per cent of GDP, fell to about 1 per cent in 1999, from 4 per cent in 1997.
In evaluating the RFSN, I would like to include the Asian Bond Market Initiative (ABMI) together with the CMIM and the AMRO as they were launched to address the same root causes of the AFC, i.e., how to resolve the double mismatch problem in Asia and improve recycling of Asia’s savings within the region.