Instead, in my remaining time, I will focus on some lessons that economists have drawn from the Volcker regime regarding the importance of credibility in central banking and how that credibility can be obtained. As usual, the views I will express are my own and are not necessarily shared by my colleagues in the Federal Reserve System.
One of the big issues thrown up by the recent crisis is the systemic risk and moral hazard associated with what have come to be called Systemically Important Financial Institutions (SIFIs). The underbelly of the recent crisis was the failure of SIFIs which, because of their size, complexity and interconnectedness, brought enormous disruption to the global financial system.