And the ECB has also been a leading central bank in taking action to address dislocations in the longer-term interbank money markets, even though this has proven difficult to realise given that the term premium comes from banks’ own uncertainties about liquidity and counterparty risks.
My second thought is that there is clearly a need for greater transparency in financial markets on both sides of the Atlantic. This can take many forms. One is to reduce product complexity: I expect to see more emphasis on financial assets – including structured products – that have simpler features to make them less illiquid in difficult market conditions.