How should we characterise and respond to episodes of financial boom and bust – the financial cycle? iii. What determines the amount of systemic risk we are exposed to, and how can we identify and analyse it? The positive news is that in each of these three areas much has been learnt since the crisis.
The not-so-positive news is that our answers to these questions are still incomplete and, just as one issue is resolved, too often another seems to emerge. I would like to reflect on each of these three questions, highlighting the progress that has been made and offering a few thoughts on some of the work that remains. Resilience First, to the issue of resilience.