Second, the crisis laid bare important structural deficiencies, such as the woefully inadequate disclosure on securitized products. Transparency should be improved so that risk can be identified more effectively and priced more efficiently. For example, the Bank of Canada used its collateral policy to improve the disclosure of bank-sponsored ABCP, creating a standard that should become commonplace.
There is considerable regional variation, and it is likely to be a bumpy ride. The emerging and developing economies show the strongest growth. Countries like China, India and Brazil are now less affected by the economic crisis, while growth is more subdued in the old OECD countries, especially Europe.