Information about the financial stability framework and public evaluation of national balance sheets against the yardstick on international codes and standards offers investors an opportunity to assess risk better and arrive at more informed decisions. Moreover, greater clarity about financial stability policy potentially simplifies the task of monetary and fiscal policy by establishing clear lines of responsibility and objectives.
This is an example of the market adjusting - in this case, the foreign exchange market - to shield the export sector (but not the whole economy) from the worst of the Asian downturn. 4. Asia Having made these points, I do not want to give you the impression that I am downplaying the effects of Asia.