In the Bank of Japan’s experience, micro-level supervision, such as on-site examinations and off-site monitoring has been a valuable tool. The Bank of Japan began its on-site examinations in 1928. This was founded on the experiences of the financial crisis during the latter half of the 1920s.
It is true that from time to time somebody stands up and says that things cannot go on like that, but so far it has worked. Maybe because the alternatives are less appealing. Another angle of the same situation is that US Secretaries of the Treasury advocate a strong dollar, while Israeli Ministers of Finance prefer a weak shekel. 3.