The experience of monetary integration in the euro area indicates that the choice of an exchange rate regime depends to a large extent on the medium and long-term perspectives for economic and institutional integration in a given region. As I have already pointed out with regard to the euro area, the more advanced regional integration, the higher the need for exchange rate stability.
All of the work that we will talk about today will help, but we have to acknowledge that the transition will be complicated. Unfortunately, as I have discussed, we cannot guarantee that it won’t be necessary. The most complicated aspects involve the legacy contracts that reference LIBOR, many of which do not have strong language in place if LIBOR were to stop publication.