These extreme events have provoked us to re-think what is known and where economic research should focus, in some cases fundamentally. We had long known that banks that appear individually sound can be vulnerable to problems affecting the whole banking system, and that such problems can amplify economic shocks. But the crisis sharply accelerated the study of financial fragility, contagion and instability nonetheless.
The foreign exchange administration reform will be deepened by lifting unnecessary controls and simplifying procedures to provide foreign exchange convenience to enterprises investing and operating abroad. Last year, the quota limit of foreign exchange purchase for overseas investment purpose was abolished to satisfy the need of enterprises in outward investment.