In these respects it is also possible to produce various numerical examples and simulations. Alternative assumptions can be made, for example, about what would be a reasonable exchange rate in the long run and test them against different underlying cyclical developments. An important issue for the Riksbank here is the effect on inflation. If it is found that inflation would be unduly high, for example, fiscal policy might have to be tighter. The interaction of the business cycle, for example, and the choice of fiscal policy and exchange rate can be studied in this way. The discussion would benefit from several independent analyses of this kind. Economic policy in ERM2  If Sweden becomes a full participant in the monetary union, the conditions for Swedish stabilisation policy will change. The task of conducting a stabilisation policy for Swedish needs would then rest - to the extent that it is considered desirable - entirely on the Swedish parliament or Riksdag and the Government. I want to underscore that this change already takes place essentially during the period in ERM2. It should be noted that a good state of readiness is absolutely essential. At the Riksbank we usually reckon that it takes between 1 and 2 years for changes in monetary policy to elicit their maximum effect on the rate of inflation. We do not know exactly what the corresponding time lag is for the real economic impact of fiscal policy.
Currently, 18 currencies are allowed to settle through CLS. The CBC along with CLS and the banking sector are working to make the CLP the 19th currency of this system. In addition to acting in accordance with its financial stability mandate and contributing to the development of the Chilean financial sector, the promotion of this initiative further support the internationalization of the CLP. Page 16 of 20  Central Bank of Chile September 2019  The reduction of settlement risk of the FX transactions through a PvP settlement in CLS is just one of the benefits of the system. Moreover, CLS reduce the liquidity needs of its participants through the use of multilateral netting, and enhance confidence, particularly in times of financial stress. From a more general perspective, a satisfactory CLS due diligence process along with a broad international participation trading in the CLP, will be a strong signal of the development and competitiveness of the Chilean financial markets. The process for the Chilean peso to become the first South American currency on CLS has started. Last July, we received the visit of CLS executives who had conversations with market participants and fruitful discussions at the CBC. After that visit, CLS and the CBC started the due diligence process. During this phase, the actions from the public and private sectors are essential. Nevertheless, a successful process should not be over before the end of 2021.