That said, the usefulness of coordinating policies should not be forgotten – whether that be coordination of specific policies across different countries (as happened in the wake of the failure of Lehman Brothers with the simultaneous cuts in policy rates) or coordination of policies within one jurisdiction.
Respect for the independence of the various authorities involved in securing financial stability should not imply separation and a lack of coordination. Thus, I strongly agree with Danielle Nouy that “micro-prudential supervision needs to be complemented by a macro-prudential perspective”. It is imperative, however, that the macroprudential toolbox be further enhanced with innovative tools beyond those focused on capital requirements.