BIS central bankers’ speeches  Chart 5:  Chart 6:  Net migration(a) from Ireland overwhelmingly to economies outside the euro area since the crisis  Risk-sharing in EMU substantially lower than in Canadian, US and German federal systems  (a) Cumulative net migration between 2009–14 from Ireland by destination. Source: Central Statistics Office of Ireland. Source: IMF – Toward a fiscal union for the euro area, technical background notes (September 2013). Based on Hepp and von Hagen (2012) for Germany; Asdrubali, Sorensen and Yosha (1998) for the US; Balli, Basher and Rosmy (2011) for Canada; and Afonso and Furceri (2008) for the EMU and EU. Chart 7: Rest of the world now borrowing from the euro area as a whole  Source: Eurostat (ESA 95 definitions).
It is this common view that I will present to you now as I have had occasions of presenting it, as the position of Banque de France, in the last G VII meeting, last April. I see five major points that are of systemic interest: –  the orderly liberalization of capital movements;  –  the question of reserve and debt management;  –  the key issue of transparency;  –  the question of the moral hazard associated with private sector involvement;  –  and finally the choice of the exchange rate regime. 1.1  Orderly liberalization of capital movements  The liberalization of capital movements benefits both individual countries and the world economy: it enhances long-term growth potential and improves savings/investments allocation. However, the two following principles need to be carefully taken into account in order to minimize risks: –  the restructuring of domestic financial systems and the strengthening of domestic regulatory and supervisory frameworks are preconditions of utmost importance: emerging economies should bring their domestic financial systems into line with regulatory and supervisory minimum requirements prevailing in mature economies. In that respect, the international community plays an important role through the Financial Stability Forum, the implementation of standards such as the “Core Principles for Effective Banking Supervision” or the Financial Sector Assessment Programs developed by the IMF in order to identify financial systems’ strengths and vulnerabilities. 1  BIS Review 52/2000  –  The liberalization process should be carefully sequenced, starting from the more stable capital flows (e.g.