Developments in Asia resemble the strong reversal in Finland's current account experienced in connection with the deep recession of the early 1990s. Before the crisis, the Finnish economy was characterised by abundant but relatively ineffective investment and, as a result, a large and fairly persistent current account deficit.
Creating the prudential tools, regulatory set-ups and policy tools required to better constrain system-wide risks, including generating the transparency needed for authorities and markets to be better informed about the risks to the system, is the focus of much of the reform agenda. These changes do of course need to be implemented at national levels.