The crisis fast-forwarded several of the reforms that were on the anvil. The time dimension of macroprudential policies were supplemented with measures that focused on the crosssection such as limits on cross-investments in capital instruments of banks and financial institutions, limits on aggregate uncollateralised inter-bank liabilities and limits on bank investments in mutual funds.
The large external deficit of the United States has fueled the growth in the supply of dollardenominated assets on the international markets.