Some of these measures not only proved controversial within the ECB Governing Council, but also raised a number of fundamental questions about the limits of monetary policy. These emergency measures bought the countries time to restore their competitiveness and to consolidate their public finances. Most of the former crisis countries have indeed managed to reduce or even eliminate their current account deficits.
3  A lower funding cost in foreign currency allows domestic banks to increase lending, which, together with other foreign investment, tends to cause the local currency to appreciate and dampens real volatility, making lending appear to be less risky and, in turn, promoting greater risk-taking. See Bruno, V. and H.S.