The policymakers’ challenge today is to build strong institutional structures, policy credibility, and private sector discipline that are at least as strong as might have existed earlier. However, we must do so against a background of modern, technologically driven, global finance.
It is clear that we must make the adjustments required because, with the absolute scale of global financial markets increasing, the size of bailout packages needed to fill financing gaps during international crises will get progressively larger and become less feasible to assemble.