Although the critical roles that these core institutions play in global markets require us to focus on them, we need to address the possibility that this approach could increase moral hazard by reinforcing perceptions that these institutions are too big to fail.
So across several fronts, the international environment, having looked as though it was improving noticeably early last year, turned out to be quite disappointing. The exception to this picture was in parts of Asia, particularly China, where growth has remained very strong in the past year.