reducing unproductive spending without sacrificing tangible and intangible investment) and to design reform in the shape of a programme as a whole that fosters investment and employment. Incidentally this is what the French government is doing. There is however a limit to these plans: they are national and benefit indirectly from the reform policies of others, therefore very little.
Financial literacy and education are therefore key for financial stability and for the nature of conduct and macroprudential supervision policies. In short, to safeguard financial stability, it is not enough to monitor individual choices or to regulate the conduct of banking institutions with their customers.