2  BIS central bankers’ speeches  and this would be reflected in greater income and consumption risk-sharing.4 Indeed, global and European evidence suggested that financial openness and integration had reduced consumption growth volatility.5 Another benefit of financial integration was thought to come from improved allocative efficiency.
In this respect, there are conflicting views in the market about the way in which we should react to a change in the US interest rate: pre-emptively or reactively? On the one hand, we are told that by acting reactively and delaying the adjustment, we will have to act more aggressively later, ultimately leading to a much higher rate.