To most observers, it seemed the obvious step, yet it took central banks months to co-ordinate their efforts. Equal size cuts mean basically that inflation rates are pretty much the same every where. Taking joint action also protected ECB from admitting its own mistakes. This actions, if not isolated, warn market participants from undue speculation ( such as the one that has struck Aussie dollar this last fews sessions) and set the base for allowing the same method to be applied to interventions by vaious finance ministers.

It remains to be seen if credit will now start floating. One intellgent measure was taken last night by Royal Bank of Australia, by extending repo agreements with banks to six months and one year maturities.

China envolvment was of paramount importance. The country can play a vital role in feeding the system with new means.

Finally, this approach takes away an element of predictability in central banks action, that overtime has created the unpleasant consequernce of market forcing institutions into decisions.