##ly on its consistency with a country ’ s domestic macroeconomic and structural policy framework. this being said, the choice of an exchange rate regime should rest on the following principles : – so - called “ corner solutions ” are not necessarily the only available options. free floating rates may help to accommodate volatile capital flows and asymmetric shocks ; however, they might not prevent misalignments leading to balance of payments desequilibrium, they might prove disruptive for the real sector of small open economies, which often lack the size for developing the necessary market infrastructure to cope with exchange rate instability. currency boards can be warranted only under very specific circumstances. – requirements for sustaining pegs have become very demanding in an environment of high capital mobility ; however, “ intermediate solutions ” may still remain a relevant option for a number of countries ; particularly for open economies with close links to a partner country or a partner single currency area that maintains price stability or for countries experiencing high inflation, where anchoring the currency provides a simple and credible rule for monetary policy. needless to say that the intermediate solutions are considered particularly appropriate in the european framework where the belonging to an exchange rate mechanism plays a major role in the preparation to join the single currency. – in cases where countries need to respond to very large capital inflows and related risks of inflation and real appreciation, greater exchange rate flexibility might become desirable. let me conclude these considerations with two observations : – first, we should concentrate all our efforts on implementation of existing codes and standards. implementation is the key word at present times. applying standards and codes in all economies of the world, including emerging economies and economies in transition is an immense, challenging and urgent endeavor. – second, as regards the private sector involvement, i will recommend being as pragmatic and as consistent as possible. pragmatic because a case by case assessment is always needed and there is, in my opinion, no mechanistic “ a priori ” approach which would be advisable. consistent, meaning that once the assessment is made by the international community on the concept of the participation of the private sector in the crisis solution, we have to stick to it. 2. let me turn now to the second topic of my presentation which relates to the economic strengths of the euro zone and its impact on the euro itself more specifically, i would like to stress the three reasons which make me confident in the euro zone and therefore convinced that the euro will significantly appreciate in the future :

moderate pace in coming quarters, with the unemployment rate declining only gradually. fomc participants generally expected that inflation was likely to run at or below the committee ’ s inflation goal of 2 percent over the next few years. the committee also judged that there were significant downside risks to this outlook, importantly including the potential for an intensification of strains in europe and an associated slowing in global growth. federal reserve ’ s recent policy actions all of the federal reserve ’ s monetary policy decisions are guided by our dual mandate to promote maximum employment and stable prices. with the disappointing progress in job markets and with inflation pressures remaining subdued, the fomc has taken several important steps this year to provide additional policy accommodation. in january, the committee noted that it anticipated that economic conditions were likely to warrant exceptionally low levels of the federal funds rate at least through late 2014 – a year and a half later than in previous statements. in june, policymakers decided to continue through year - end the maturity extension program ( mep ), under which the federal reserve bis central bankers ’ speeches purchases long - term treasury securities and sells short - term ones to help depress long - term yields. at its september meeting, with the data continuing to signal weak labor markets and no signs of significant inflation pressures, the fomc decided to take several additional steps to provide policy accommodation. it extended the period over which it expects to maintain exceptionally low levels of the federal funds rate from late 2014 to mid - 2015. moreover, the committee clarified that it expects to maintain a highly accommodative stance of monetary policy for a considerable period after the economic recovery strengthens. the fomc coupled these changes in forward guidance with additional asset purchases, announcing that it will purchase agency mortgage - backed securities ( mbs ) at a pace of $ 40 billion per month, on top of the $ 45 billion in monthly purchases of long - term treasury securities planned for the remainder of this year under the mep. the fomc also indicated that it would continue to purchase agency mbs, undertake additional asset purchases, and employ other tools as appropriate until the outlook for the labor market improves substantially in a context of price stability. the open - ended nature of these new asset purchases, together with their explicit conditioning on improvements in labor market conditions, will provide the committee with flexibility in responding to economic developments and instill greater public confidence that the federal reserve will take the actions necessary to foster a stronger economic recovery in a context of price