While we have made progress, financial system modelling is still in its infancy and the critical lesson that the crisis has taught us is that understanding, preventing and reducing systemic risks, as we seek to preserve financial stability, deserve our full fledged attention. Let me conclude. There is a downside risk to global financial stability.
We live in a world where all industrialized economies now profess to accept the market-based paradigm for the international financial system. But today's global economy consists of more than just the industrialized economies. There are emerging-market countries that are systemically important. These countries, particularly China, have the clout to influence the entire world economy.