However, as I will discuss in a moment, a number of important issues warrant further consideration, especially before dramatic moves are made toward increased fair value accounting. But before discussing these specific issues, allow me to emphasize one important point. As a bank supervisor, the Federal Reserve believes that innovations in risk management are very important to the continued improvement of our financial system.
Euro area policy makers cannot rely solely on the ECB and expect that it will keep monetary policy loose indefinitely. Efforts should focus on improving the resilience and potential growth of our economies and on reinvigorating real convergence as the way of improving the well-being for all euro area citizens.