To restore confidence in the near-term and the long-term future, policymakers in the euro area and elsewhere must maintain an appropriate balance between bold short-term action and the return to a path that is sustainable in the medium term.
Unlike current account convertibility, capital account convertibility does not come without a downside. But before we discuss the downside it will be in order to point out that reservations have been expressed about the most important contribution of capital account convertibility, that is, its role in better allocation of global savings.