Observations So, if this is what I expect of insurance firms, what do I see? In my initial engagements, and reflecting on the diligent work of my colleagues in insurance supervision, it is clear that there is work to be done across the sector to meet these expectations (recognising that recovery and resolution is a work in progress from a regulatory perspective).
But the financial crisis has reconnected everybody with the reality that the success of monetary policy depends on conditions it cannot create on its own. In particular, it is dependent on a stable financial system. And as the sovereign debt crisis has reminded us, sound fiscal policies remain as important as ever for monetary policy to be able to deliver price stability.