BIS Review 28/2008  3  •  However, such a behaviour might generate a spurious correlation between the residuals of a simple Taylor type policy rule for the euro area and interest rates in other economies. I suspect that this is what lies behind John Taylor’s result concerning the deviations from a euro area “policy rule” and the US federal funds rate.
And it did so not just at the national or European level. Through the G20 and the Basel Committee on Banking Supervision, the reforms became a common project at the global level. So what was the general idea behind these reforms? The primary aim was to address specific issues that had been laid bare by the crisis. This was the first step.