1  A fuller discussion of this can be found in Debelle G and M Plumb (2006), ‘The Evolution of Exchange Rate Policy and Capital Controls in Australia’, Asian Economic Papers, 5(2), pp 7–29. Available at http://www.mitpressjournals.org/doi/pdf/10.1162/asep.2006.5.2.7. Bob McCaulay has also written extensively on currency internationalisation.
In Italy, where the increase in the sovereign risk spreads was substantial and the share of bank-dependent SMEs very large, these developments had even heavier repercussions than elsewhere. The average interest rate on new loans up to € a proxy for the cost of credit to SMEs, rose more steeply than that on new loans greater than € million.