Inflation in the euro area averaged 2.3 per cent in 2000. The core rate, excluding energy and food products, was 1.3 per cent. In Italy the overall rate was 2.6 per cent and the core rate 2 per cent. The net outflow of private capital from Italy and Europe for direct and portfolio investment continued; it was greatest during the summer months.
The capital exports of euro-area residents went primarily to the United States, thus helping to finance its substantial external current account deficit. Banking systems and financial markets With today's institutional arrangements, the currencies of the leading countries provide the basis for the multiplication of credit in international markets.