I believe that our search for a global solution to the problems we now face should begin with a focus on reversing the directions of these two types of linkages – so that in place of negative spillovers we instead see positive feedbacks.
Nevertheless this road should be taken in order to strengthen market discipline. I believe that membership in a club comprising the major global players would be a special quality which could actually become attractive for those institutions. Besides, it seems quite conceivable that banking supervision might be willing to grant those institutions more selfregulatory powers.