Problems had started to crystallise in 2007, and accelerated in 2008, particularly post Lehmans, as market participants retreated towards safe assets. This tendency was intensified  The Banking Crisis – A Decade On  by the complexity and lack of transparency in the financial system.
Even with an apparent decline in the pass-through of exchange  2  BIS Review 28/2008  rates into import prices, the increase in trade volumes arising from globalization has presumably boosted the relative importance of the exchange rate in the economy, thereby strengthening an unpredictable factor in the monetary policy transmission mechanism.