The G20 countries responded to the crisis in a swift, comprehensive and coordinated fashion, eliminating key disincentives in the financial system and reducing to a minimum the risk of regulatory arbitrage or a regulatory “race to the bottom".
A major reason for that is in my view that our monetary union is incomplete. In the absence of a complete banking, capital markets and fiscal union, we would have faced a distinct possibility of further fragmentation episodes in the future if we had not adopted the TPI.