For instance, it is reasonable to assume that the financial sector, the car industry and the construction sector are likely to shrink. In my view, the economies that will suffer the most are those where the financial sector has expanded significantly in the last 20 years in connection with the boom in the housing sector.
In practice, the experience of the past year and a half has taught us that systems in which exchange rates are only halfheartedly fixed – that is, where fiscal and monetary policies are not geared toward supporting the currency – are the least sustainable and hence the least desirable.