Consequently we have to be concerned with exchange rate instability, as distinguished from mere fluctuation, for its potential to affect other markets, both goods and capital markets. Exchange rate instability arising from external events can give rise to domestic instability in the operation of the stock market, government securities markets, and the money markets, along with their attendant effects.
5 / 12  BIS central bankers' speeches  Conclusion In closing, I would like to commend the Federal Reserve Bank of Boston for organizing this conference and fostering research and debate on questions vital to our understanding of the economy.