Similar patterns can be observed in Central and Eastern European countries. This implies that risk-sharing is increasingly concentrated at the regional level. Whether the regionalisation of risk-sharing will be lasting, and whether it will make the global financial system more robust, are open questions for researchers and policy-makers. Europe offers a sobering lesson in this respect.
The single currency has made participating economies more resilient to global shocks, but it has magnified the impact of regional shocks, given the initial absence of a regional financial safety net. Conclusions and lessons for policy-makers Let me conclude. Global liquidity is an important concept and our understanding of its drivers and its effects has improved considerably over the past two years.