Modelling financial system behaviour  Ladies and gentlemen Macro-modelling of financial market developments, let alone financial stability has by most measures less progressed than general macroeconomic modelling. At least four reasons for that are obvious: •  Firstly, financial integration on a regional as well as on a global scale mostly followed real integration (trade induced financial flows).
•  Secondly, the role of expectations and psychological aspects seems to be much more pronounced on financial markets. Neither is very easy to capture analytically or to quantify. •  Thirdly, the financial system became much more complex in a short period of time as a result of a number of significant structural changes.