Such a change, when it occurs under pressure, can result in considerable instability which is likely to be spread over a fairly long period. At the end of this process, the country then has no option but to revert to a more flexible exchange rate system.
Conclusions Today, I have offered my views on systemic risk, which might have raised more questions than answers for central banks. In concluding my remarks, I would like to stress that central banks must continue to pursue these issues to discharge their responsibilities. The responsibilities arise from the following facts.