Finally, cyclical factors should be given due consideration in the assessment process to ensure that the imbalances identified are those that can be expected to either persist or reemerge in the coming years if current policy frameworks are not adjusted accordingly. *** Let me in concluding reiterate that in the absence of determined action imbalances are almost certain to persist.
These, as I have just argued, are the outcome of currently still not sufficiently sustainably framed policies. This, in turn, reflects a lack of progress at the domestic level, rather than a failure of the system itself. As I have said, the international monetary system after Bretton Woods was characterised by flexible exchange rates between the most important currency blocs.