Your city may be out of the hustle and bustle of the financial markets, but that does not mean that you have been spared the fallout of the continuing global economic crisis, which is now well into its fifth year, and many commentators are now talking about the possibility of a “lost decade”.
Financial stability, including macroprudential policy, has become the other key pillar of central banking, alongside monetary policy. The main policy implication is to develop financial regulation consistently at the global level. Given the remarkable progress so far, a comprehensive impact assessment is appropriate before taking big new steps forward. However, it is imperative that we safeguard the progress achieved and avoid rollbacks. 4.