Professor Philip Lane:

My first observation is that we saw pretty significant credit booms in other parts of Europe outside the euro area. Second, I tried to indicate when I spoke about interest rate policy that the global financial system can overwhelm individual economies, including those with their own currencies. The interest rate tool is a double-edged sword, whereas macroprudential domestic credit policies are much more direct. A simple refusal to allow the banks to lend too much can do a great deal to stabilise the local system.