In particular, keeping markets continuously open requires policies and infrastructure that reinforce the private generation of liquidity in normal times and facilitate central bank support in times of crisis. The cornerstone is clearing and settlement processes with risk-reducing elements, particularly central clearing counterparties or “CCPs” for repos and OTC derivatives.
This means that everyone benefits from or shares in the income and wealth generation when the economy expands. From an economic perspective, research on the strategies that increase total factor productivity, competitiveness and economic diversification within and across economic sectors are essential.