In many respects, this will be a matter of trial and error and, quite simply,  18  BIS Review 68/2010  seeing which solutions seem to work. One step in that direction is Finansinspektionen’s recent decision to recommend a ceiling for the loan-to-value ratio of new mortgages. Something that can, however, be said with certainty is that we will probably never completely be able to prevent financial crises – here, history speaks all too clearly. But I do believe that now, when our awareness of the problems is unusually great, we have the chance to design regulations and frameworks that will at least make these crises a little rarer and a little less dramatic. BIS Review 68/2010  19
The devaluation of the denar would cause additional distortions in our economy, because of the following: -  the structure of trade of the Macedonian economy characterises with high reliance of the export on the import of raw materials and manufacturing supplies, low representation of import goods that could be substituted with domestic products (machines and other equipment), weak price ellasticity of certain type of import demand (especially energy products), due to which the devaluation of the domestic currency will not reduce the problem of the structural trade deficit;  -  On the other hand, the negative implications, that can be seen through the transmission effects of the devaluation of domestic currency on prices, further psychological pressures and the opening up of a new cycle of expectations for an additional depreciation of the value of the currency, will certainly appear and they will represent a potential threat for the price stability;  -  Additional unfavorable element is the currency mismatch, i.e. the net indebtedness of domestic economy abroad, which clearly implies substantial negative effects from any possible depreciation of the domestic currency. Therefore, the reaction of the monetary policy, by increasing the interest rate, is directed towards stabilization of the foreign exchange market, further maintenance of the foreign reserves at adequate level and continuation of the policy of stable foreign exchange rate. Obviously, the succesfull maintenance of the external balance imposes the necessity of appropriate and well coordinated measures by all the carriers of the macroeconomic policies.