Conclusion Let me finish with a few remarks on international coordination. Our experience with the international interplay of monetary policies goes back decades. The degree of freedom given by floating exchange rates allows central banks, especially for large countries or areas, to target domestic inflation rates without the need for much coordination.
On the other hand, the high degree of integration of capital markets achieved over the past few decades, while beneficial in terms of the availability of funds, means that macroprudential policies cannot be set in each country or region in an isolated way.