In many others, innovations are left to the market test, unless they happen to have ex-post, negative effects, in which case public policy may consider intervening. In brief, there are several industries which have been subject to different systems of regulation, and they have stood the test of time.
The purpose of macroprudential policy is to ensure that the financial system can perform its role for the real economy, even in times of crises or distress. In the following, I will briefly review the origins of financial crises and the importance of taking a systemic view. I will then review the reform agenda of the past 10 years.