Such an adjustment did not happen during the recent financial crisis; on the contrary, the retrenchment of risk-taking  4  BIS Review 88/2010  that occurred led to a shift into U.S.-dollar-denominated assets, resulting in an appreciation of that currency. But disorderly exchange rate adjustment remains one of the important risks associated with global imbalances.
Despite the low interest rates allowed by the accommodative monetary policy, widespread uncertainty about prospective demand growth and the deleveraging by overindebted firms have held back private investment. In stressed euro-area countries, these difficulties have been compounded by limited access to credit, because of balance sheet repair in the banking sector, and the increased cost of capital, owing to financial fragmentation.