On the other hand, sharing monetary policy and in particular an exchange rate deprives national economies of some adjustment tools in the face of local shocks. This means that such shocks have to be preempted to the extent possible through sound economic policies.
Taken as a whole, the reforms make the world’s financial system safer. However, that safety isn’t free. Like all regulations, the Basel rules on capital and liquidity come with costs, both direct and indirect. For example, financial institutions have to make decisions about how to best allocate their capital.