Some concrete ideas are being discussed on how to reduce pro-cyclicality, such as adjusting capital requirements to the business cycle (making them less stringent in bad times and more stringent in good times), adding maximum leverage ratios or introducing dynamic provisioning rules (where reserves have to be accumulated in good times and are drawn down in bad times).
Our economies are also showing remarkable resemblance in their diversity – among the 50 states on this side of the Atlantic and among the 17 euro area members on the other side. This is true for both the euro area and the United States before the crisis and also in their reaction to the asymmetric shocks during the crisis.