On the 1st of January 1999, national currencies were replaced by the euro in eleven European countries. According to some economists, the switch to euro-denominated prices for goods and services (the euro changeover) did not amount to a mere change of the numeraire for current transactions: it could also have generated speculative behaviour, through the implicit coordination of price setters towards higher price equilibria, as a result of money illusion or market imperfections (Fehr and Tyran, 2001; 2007).
In the aftermath of the crisis, there seems to be a case for improving the menu of instruments and institutions to protect against global liquidity crunches in a preventive way: multilateral coordination proved that it could respond to the shocks but only belatedly—as a “safety belt” that saves passengers? lives but does not prevent the car crash. Moreover, the recent strengthening of IMF resources and redesigning of instruments, while a move in the right direction, met the demand of only a few countries, and its effectiveness as a protective safety belt remains largely untested. And a new and enhanced menu of facilities offering more complete after-crash protection which the Fund is actively working on—may still face important political obstacles.
Ephedrine is a natural constituent of the herb ephedra and a synthetic compound present in certain over-the-counter drug products. The herbal form, known as Ma Huang in China, has been used as a remedy for asthma. In western cultures, ephedrine, the active drug product ingredient, has been used as a bronchodilator and decongestant for various respiratory problems. More recently, dietary supplements containing ephedra have been promoted for weight reduction and as a performance enhancer in body building and other sports.
Under the provisions of the Dietary Supplement Health and Education Act of 1994 (DSHEA), the Food and Drug Administration (FDA) must show that a supplement is unsafe and causes harm before it can be removed from the market. In 1997, following several hundred reports of adverse effects alleged to be caused by ephedra use, FDA proposed rules to restrict the dosage, require specific warnings on ephedra-containing supplements, prohibit supplements containing ephedrine combined with other known stimulants, and require warnings against excessive intakes. This proposal was criticized for the lack of scientific evidence to support FDA’s dosage limitations and the labeling requirements. In 2000, FDA withdrew part of the proposed rule, but subsequent highprofile deaths attributed to ephedra led FDA to re-propose the original regulation in 2003. On December 30, 2003, the Department of Health and Human Services (HHS) and FDA announced plans to prohibit sale of ephedra, using the safety provisions of DSHEA for the first time.
