I would argue that neither is feasible or desirable. 1 3.1  Exchange rate-based reform options  A system of rigidly fixed exchange rates would be impractical (unless there was a political willingness to establish a single world currency) and would not be viable without a return to generalised restrictions on capital mobility.
Issues facing Japan's financial system  As the last topic of my speech today, I would like to touch upon the recent volatility in global financial markets and its implications for Japan's financial system. As subprime mortgage problems have intensified and become more widespread in financial markets abroad, the impact on Japanese financial institutions has been gradually increasing and is greater than originally expected.