Strengthening the toolbox  Role of authorities, preventive action and resolution regimes A first crucial issue involves the role and powers of authorities. The crisis has highlighted that the intensity and effectiveness of the supervision of SIFIs must be stepped up, particularly with regard to both preventive action and resolution powers.
But if the flows took the form of portfolio investment, then the exchange rate had to appreciate to encourage the real resource transfer. The other longer-term structural influence on the exchange rate was the rapid productivity increases in the tradeables sectors: in theory, these countries might have expected to find, over time, their real exchange rates appreciating.