Moreover, the investment horizon is being reduced by the one-year-horizon of Solvency II, shorter grace periods for pension funds to address funding shortfalls, and heightened accounting volatility. This limits the scope for taking long-term or illiquid positions without too much concern for short-term fluctuations in their value. These factors tend to encourage a shift away from long-term investing in risky assets.
•  One school of thought held that the main thing required to restore stability was to improve transparency, particularly the Government’s transparency to the private sector - e.g. by more frequent and accurate publication of figures for international reserves. This school of thought also gave a fair bit of weight to improving the quality of bank supervision in emerging market countries.