Three conditions serve to promote a healthy competition: BIS Review 8/2000  2  –  First, a lot of common ground is necessary regarding the anti-inflationary stance of the countries’ monetary policy;  –  Second, further sustainable progress in consolidating public sector budgets is needed - especially in Europe;  –  Third, the currency areas have to rise to the economic challenges.
The USA has to prove that its large external debt is justified by its growth, innovative power and efficiency. In Europe it is important to enhance competitiveness and to reduce unemployment by implementing structural reforms. Japan has to rebuild confidence in its financial sector and has to create the conditions for a selfpropelling upswing.