Importantly, resource utilization rates have been so low since late 2008 that a variety of simple rules have been calling for a federal funds rate substantially below zero, which of course is not possible. Consequently, the actual setting of the target funds rate has been persistently tighter than such rules would have recommended.
It is also important to stress that the introduction of the euro must not give rise to complacency. In order to ensure that convergence is sustainable and that the Slovak people can reap the full benefits of euro adoption, the Slovak public authorities will need to pursue ambitious economic policies on all fronts.