Spending in the household sector has held up well, and some signs of improvement are evident in business profits and investment. Fiscal policy continues to provide stimulus to aggregate demand, and monetary policy is currently accommodative. With the growth of productivity well maintained and inflation pressures largely absent, the foundation for economic expansion has been laid. 4  BIS Review 24/2002
However, not all of the recommendations of the Brower Report have been implemented and many other issues still need further investigation and debate. But developments show that we are heading in the right direction. I have argued that policy makers and central banks are well aware of the regulatory challenges for European financial markets.