Principles-driven policy action and a set of clearly defined rules which limit the scope for economic policy discretion make economic policymaking more predictable and can help to defuse many problems such as that of time inconsistency, which is a topic I shall return to later in my speech.
Questions were even raised during the crisis as to whether complying with this regulatory framework was always necessary or even possible in the first place. Insolvency law fleshes out the principle of liability.