With so few historical examples of dominant world reserve currencies, we are understandably inclined to look to the experiences of the dollar’s immediate predecessor.
The corresponding very long-term interest rates depend on the independence and the credibility of the central bank. Question: A local question in Germany: the Landesbanken and the crisis they’ve gone through; do you feel that’s been taken care of or do you think public sector banks in Germany and elsewhere need consolidation as some people are calling for? What needs to happen?