A direct measure of this is the cross-currency basis, which I spoke about recently.12 For example, the relatively wide yen basis in part reflects the increased capital flows out of Japan.13 If fewer of these investments were hedged, we would see more of these capital flows reflected in the exchange rate.
So, in sum: Yes, we are done with Basel, but we should lose no time and start implementing it. And one point is of crucial importance in my mind: After having implemented Basel III, we need a regulatory break — because, yes there is regulatory fatigue; but do not get me wrong — this is no ticket for regulatory capture and deregulation.