2  BIS Review 28/2008  extent that they have a medium-term influence on price stability. This is because another fundamental law of monetary economics is alive and well in the globalised economy: flexible exchange rates are a sine qua non for price stability. Does a globalised world call for more international monetary coordination?
With a growing set of prices and asset valuations being determined internationally, information on international developments is crucial for monetary policy-making. In this light, the financial turmoil in particular has shown the value that growing financial globalisation places on a timely and open international exchange of information among central banks and regulators.