The FSB’s work on asset management goes in this direction and shows the road ahead. The build-up of leverage and the growing exposure to illiquid assets in the asset management sector are clearly relevant developments for macro-prudential supervisors. These need to be carefully monitored and assessed. However, macro-prudential policy cannot stop at this point.
Did you factor in the risk that some countries could run riot in terms of fiscal policy? Trichet: It was a privilege for me to be involved in the construction of the Maastricht Treaty, together with Horst Köhler, who was State Secretary at the time. We were all fully aware that it was necessary to prevent governments from running irresponsible fiscal policies.