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But so long as the extra money continues to go on hiring civil servants rather than doing things that will allow the economy to grow faster without overheating, interest rates will remain high.
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Government data indicates the economy is in danger of overheating if interest rates are not lifted.
While noting that emerging markets such as China, India and Brazil have bounced back from the global recession quickly, the B.I.S. warned that they face higher inflation and other symptoms of overheating if interest rates remain low.
Otherwise, a cheaper dollar would cause the economy to overheat and interest rates to rise: that would either stall the economy or limit the decline in the dollar and the rebalancing of the current account.
Not only does a fixed rate prevent a central bank from using interest rates to prevent an economy from overheating (because higher interest rates would push up the value of the currency), but it also encourages too much foreign-currency borrowing when foreign interest rates are lower than local ones.
But the Irish economy is overheating dangerously, and interest rates cannot be lifted because they have to fall to the same level as in continental Europe by the start of 1999 when EMU begins.
It's due to the Nordics' cold climate (which helps lower the cost of keeping the servers from overheating) that the interest in building data centers is growing.
It would have been business as usual and by now there would have been pressure on the Bank of England to raise interest rates to prevent the economy overheating.
The economy grew 2.6 percent last year, down from 8.5 percent the previous year, and the central bank had to increase interest rates because the economy was overheating and inflation reached 8.9 percent last year.
Those nations' domestic economies are attracting floods of speculative capital seeking higher interest rates and are at risk of overheating.
But they are particularly important for the euro zone because individual countries cannot use interest rates or exchange rates to stop overheating.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com