Finally, turning again to the euro area, it is clear to me that similar reflections are needed, namely, on how to redesign a pre-crisis financial integration model which failed to deliver either economic stabilisation or an efficient allocation of capital.39 The European Commission’s plan for a Capital Market Union provides the framework for these reflections.
These are the types of questions where we, as policymakers, are looking to the research community for answers. Important discussions are taking place in forums such as the Financial Stability Board, but on the fundamental issues – how much financial globalisation, if good, and what type – we need up-to-date evidence.