However, we must remember that the financial stability committee’s responsibility is preventive, and that the operative responsibility essentially remains that of the financial regulators or, in the case of a financial crisis, the government.
By contrast, monetary policy in Japan and the eurozone remains highly accommodative, and is expected to remain so for some time. Changing expectations with respect to monetary policy stances in the advanced economies are likely to keep emerging-market currencies relatively volatile, as capital flows respond to these developments.