Creating the prudential tools, regulatory set-ups and policy tools required to better constrain system-wide risks, including generating the transparency needed for authorities and markets to be better informed about the risks to the system, is the focus of much of the reform agenda. These changes do of course need to be implemented at national levels.
By some estimates it may be almost a year before the brunt of the effect of an interest rate change is felt on aggregate demand, although the influence appears sooner in some sectors of the economy than in others. And it may generally take longer still for a policy change to alter the course of inflation.