We have also seen that turbulence can arise from relatively modest initial shocks. The system is so interconnected that what looks stable can turn out to be “meta-stable”, which means potentially highly instable. Snow on mountain slopes can be meta-stable, looking pristine and tranquil yet turning into an avalanche after only a minor disturbance.
Rather, we should strive to provide a supportive market infrastructure, including regulation and supervision, market practices, disclosure, and accounting methods, in a broad context and to make it more robust. The systematic improvement of market infrastructure will contribute to reducing the risk of financial crises, which is the most serious uncertainty.