This evidence suggests that reinforcing the effectiveness of market discipline would have considerable benefit, and thus I believe that such support should also be a priority. Indeed, in my judgment, market discipline should be an important complement to supervisory discipline.
In assessing this possibility, it is important to keep in mind the international context, which I will turn to next. International context The notable effects of recent crosscurrents from abroad should lay to rest any remaining lore that the United States is a closed economy. Financial linkages between the United States and foreign economies are immediate and extensive.