In the 1980s there were numerous books and articles predicting that Japan would soon overtake the US as the world’s largest economy, and by implication that its corporatist approach was superior to more market-based approaches. In the first half of the 1990s Australia was regularly criticised for lacking the vigour of the emerging-market Asian economies (the Tigers) with their activist government-led development approach.
Our objective should be to set capital and other prudential requirements for large banking firms at a level that protects financial stability and maximizes long-term, through-the-cycle credit availability and economic growth. Guiding principles to simplify and reduce regulatory burden As we near completion of the major post-crisis regulatory reforms, this is a good time to assess the effectiveness and efficiency of these reforms.