21162; Miranda-Agrippino and Rey (2015), ”World Asset Markets and the Global Financial Cycle”, NBER Working Papers, no. 21722. BIS central bankers’ speeches  3  there is also evidence that exchange rate regimes still matter. Various recent studies support the traditional view that exchange rate flexibility affords at least some degree of insulation from global shocks.
The world economy has become highly integrated, and the complexity and inter-connectivity  BIS Review 158/2010  1  of economic and financial phenomena have greatly increased. It has therefore become tremendously difficult for any one central bank alone to either prevent a crisis or deal with its aftermath.