On the other hand, financial integration implies a structural transformation of the financial system, including the creation of intensified cross-border financial links and therefore calls for new appropriate measures to ensure financial stability in a renewed integrated financial system context. To summarise, the effects of financial integration on the stability of the financial system can be expected to be positive in the long run.
The move to more market-determined exchange rates has increased control of domestic monetary policy and inflation, accelerated the development of financial sectors, and, ultimately, boosted economic growth. 6  As the Federal Reserve pursued tight monetary policy in the aftermath of the crash of 1929, it simultaneously sterilized the resulting large gold inflows.