*  *  *  Dear ladies and gentlemen, Central and eastern Europe has gone through an unbelievable development during the last two decades in all aspects: politically, economically and socially. But the financial crisis has thrown much of that progress into doubt. Some brave but at the same time unpopular steps urgently need to be taken by the governments of the region.
Such a situation would give rise to a risk that the targeted security might become disconnected from the rest of the yield curve and private interest rates. The Federal Reserve has experience in using these tools, although admittedly not in a deflationary environment. Therefore, to describe these tools as “unconventional” may not be entirely appropriate.