The period near the end of the 1990s saw investors become increasingly optimistic - some have said irrationally exuberant - about the prospects for the U.S. economy. The associated financial flows into the United States helped to drive up the U.S. dollar over this period - at the expense of other currencies, including the Canadian and Australian dollars, the euro, and the yen.
This model is not easy to apply to the banking sector for at least two reasons. Firstly, the surveillance issue is different in the banking sector. And secondly, the harmonisation of rules and conduct in the banking sector has already reached a high level.