The markets apparently already assume that the core tier 1 capital ratios will be on the order of 7 per cent (the minimum of 4.5 per cent plus the 2.5 per cent capital conservation buffer). The change-over to the new system must nonetheless be promptly and clearly prepared by banks and authorities working together.
In each of these periods, output slowed or even fell very briefly, the rate of unemployment stopped falling and/or rose, and inflation moderated. The 2000/01 episode was notable in that it coincided with a downturn in the major countries.