In anticipation of the new rules banks have already started to increase their capital. Additionally, the transition period before the new requirements fully enter into force has been set with a long horizon. These are clear signs that policy-makers have found the right balance between regulation for stability and ensuring strong and sustainable growth.
In fact, there is no inherent conflict between the G20 agenda’s objectives of a more stable financial system and of strong, sustainable and balanced growth. What we have to be careful with is public debt. The (sadly) new feature of the current crisis has been its third phase, the debt crisis, which hit us hard in May 2010.