If the oil price continues to escalate, second-round effects of price rises could become more prominent, thus leading to a further acceleration in global inflation. However, the short- to medium term global inflation outlook remains positive, particularly in view of the fact that inflationary expectations remain somewhat well anchored and output gaps in most countries are not subject to undue pressure.
Now this may be an extreme position, but there is a kernel of truth in it. Do we have a framework where the top management, the Board, understands the computer models used for creating risky positions in complex products and their implications? There has to be a policy framework for continuously assessing and auditing the performance of the IT resources, including IT personnel.