We need a system in which insolvent firms fail. Market discipline only works if governments can demonstrably and credibly commit to allow firms to fail. This system isn’t just about giving government officials better options on Sunday nights. It is about making sure that market discipline is operative in the prior months and years to avoid altogether the proverbial Sunday night judgments.
In this context, I would like to stress two issues: •  First, we need to reform the financial market architecture to make markets more resilient and less prone to speculative exuberance. In order to achieve this, we have to use the current political momentum. •  Second, credible exit strategies will be needed at the right moment all around the globe.