Policymakers now need to decide and to implement. Recent tensions in Europe have underscored this urgency. Market volatility over the past couple of months has reflected both macroeconomic forces and heightened regulatory uncertainty. A flurry of tangential proposals has sown confusion about the focus and intent of regulatory reform. Could taxation and regulatory fiat really address Too-Big-to-Fail?
Are markets part of the problem or part of the solution? This past weekend in Busan, South Korea, G-20 finance ministers and central bank governors refocused on the core reform agenda of capital, resolution, and market infrastructure. Later this month in Toronto, G-20 leaders can be expected to harden that resolve.