When exchange rates are free to adjust, this general approach to policymaking has proven effective in fostering macroeconomic stability over time in many countries. 1 In my remarks, I will expand on another of John's points – namely, that monetary policy making has been complicated by globalization, particularly by rising trade volumes and increased capital market integration. That is true in several ways.
In my view, the transition costs are certainly outweighed by the benefits stemming from faster and cheaper payments, legal certainty and the ease of doing business throughout Europe. I sometimes hear the question: Is it really working? Are banks really delivering? All the building blocks for an integrated retail payment market are in place.