In other words, the changes that we have seen in recent years represent a global reality. We simply cannot wish them away. And they will continue, regardless of the level of our policy interest rate and regardless of whether we have a fixed or a floating exchange rate. Monetary policy cannot change the reality of these developments.
Emerging economies’ financial markets continue to show nervousness on the whole, but recently have regained stability because the Federal Reserve’s reduction in the pace of its asset purchases was postponed (Chart 4).