With a view to stability, sound macro-economic policies are the first line of defense in reducing economies’ vulnerability to external shocks. Events that might trigger a crisis should be forestalled preemptively by avoiding a build-up of short-term external debts and maintaining an appropriate level of foreign reserves.
Addressing the issue of the global perspectives of the European financial markets, in general, and the Pfandbrief market, in particular, requires a brief review of the developments in the European financial markets since 1 January 1999. In the money market, the changeover to the euro and to the single monetary policy has taken place rapidly and smoothly.