of demand towards the desired mix of investment and consumption. softer tradeoffs than implied by the trilemma are suggested by some of the empirical evidence on interest rate co - movements. for example, there is ample evidence that domestic short - term interest rates become progressively less correlated with short - term interest rates in large foreign countries, and that monetary policy is more autonomous, as countries move from high capital mobility to low capital mobility, and from rigid currencies to flexible currencies. 5 using foreign exchange reserves to support currency stability is unlikely to be as effective in enabling the country to attain domestic growth and inflation objectives. if losses of foreign reserves are not sterilized, the effect will be similar to that of domestic monetary tightening, and as already discussed, might work against domestic growth and inflation objectives. if reserve losses are sterilized and the underlying cause of capital outflows is not addressed, reserves losses can be persistent. macroprudential policy provides an additional tool that can add degrees of freedom and help soften the tradeoffs of the trilemma. macroprudential policy can potentially temper spillovers by modulating the type of buildup of financial imbalances that contributed to the asian crisis of 1997, countless other emerging market crisis, the global financial crisis of 2008 and the subsequent euro area crisis of 2011. progress continues to be made in designing macroprudential policy frameworks, in definition of objectives, and in developing appropriate instruments, calibration and communication. capital flow management can be viewed as the part of the macroprudential toolkit that operates across borders. over the last five years, capital flow management has received increased attention, first in managing inflows and, more recently, in managing outflows. 6 a consensus has emerged that capital flow management can be useful as part of a broader set of policy tools. in fact, the effectiveness of capital flow management may be limited if not appropriately supported by monetary, fiscal, exchange rate and prudential policies, or the obstfeld, shambaugh and taylor ( 2005 ), goldberg ( 2013 ), klein and shambaugh ( 2015 ) and obstfeld ( 2015 ). g20 ( 2010 ), imf ( 2012 ), farhi and werning ( 2014 ) and imf ( 2015 ). bis central bankers ’ speeches warranted macroeconomic adjustment. also, capital flow management practices that are transparent, temporary, and targeted seem to work best. spillovers

it is true that, when the euro was introduced, a few sectors in some european economies tried to take advantage of the changeover to increase certain prices abnormally. this led to an average rise of around 0. 2 % at the time of the changeover. in the case of france, christian noyer explained this phenomenon, which is insignificant in the life of the euro thus far, outstandingly well. it has become clear that we have done what has been necessary to guarantee price stability in the euro area. we will have very low inflation for some months in the course of 2009, and i already predict some people saying to us that it will be too low! this is a result of the fall in oil prices, as it was the high inflation in 2008 which resulted from their rise. le figaro magazine : the euro celebrated its ten - year anniversary on 1 january 2009. without it, where would we be? jean - claude trichet : the euro is evidently an advantage for those democracies that have chosen to adopt it. it has proven its stability, its resistance to shocks and its resilience in the face of financial and economic turmoil. once again, i would say, as we have faced many tests over the last ten years : the bursting of the internet bubble, the asian crisis, the raw materials and oil price shock... in ten years, the euro has been a key factor in achieving the single european market and has provided a shield against international turmoil. le figaro magazine : is the euro, therefore, a total success? jean - claude trichet : it is a big success. we have given european citizens a single currency which is in line with what was promised : a currency which retains its value, which inspires confidence, a stable currency, at least as stable as the legacy currencies. ten years ago, many believed this promise could not be fulfilled. le figaro magazine : in terms of job creation, has the euro kept its promise? jean - claude trichet : it is not correct to say, as some have done, that the euro has acted against job creation. on the contrary, in the first ten years of the euro, the number of people in work increased by approximately 16 million, which is at least 3 million more than in the usa in the same period. we have also created many more jobs than we did in the decades preceding the euro, in europe as well as in france. le figaro magazine : can