2  The views presented here are my own and not necessarily those of other members of the Board of Governors or the Federal Open Market Committee. BIS Review 70/2009  1  A recent history of financial regulation Systemic crises typically reveal failures across the financial system.
In the absence of country-specific monetary policies, an idiosyncratic shock cannot be absorbed through the real exchange rate but has to be digested via other channels: •  flexible wages,  •  fiscal transfers and  1  OeNB (2009): Foreword, FEEI special issue: “20 years of East-West Integration- Hopes and Achievements”.