I merely wish to record that from about the middle of 1999, markets around the world began to recognise that the accommodative stance of monetary policy by major central banks that had been so appropriate for 1998 and early 1999 was starting to look less appropriate as 1999 progressed and strengthened.
This reassessment happened first in the United States and was soon followed in other English-speaking countries and then in Europe. As usual, the markets were quicker off the mark to raise market interest rates than they needed to be, but they were broadly correct. Since mid-year, we have seen the United States, the United Kingdom, Australia and the ECB tighten monetary policy.