A year ago, we were struggling to understand the potential economic consequences of the events of September 11. At that time, it was unclear how households and businesses would react to this unprecedented shock as well as to the declines in equity markets and cutbacks in investment spending that had already been under way.
Second, the relaxation in the markets and the expansionary monetary policy are dulling the enthusiasm for reform in the ailing countries. That’s why it’s all the more important that expectations are met and that further reforms are not just announced but actually put into practice. 4. Germany as a role model  Germany is an important role model in this respect.