Some authors have argued that the procyclicality concerns are largely exaggerated because there are reasons to believe that a number of other factors can alleviate or even offset these effects. (See Borio 2002). I think we don't know the definite answer yet. Theoretical arguments and the preliminary evidence combined should alert us that we have to make further progress on this issue.
The Role of Central Banks I have argued that there is a need to strengthen the system perspective on financial regulation and financial stability and that the regulatory instruments and objectives have to be complemented by new  4  BIS Review 53/2002  approaches to risk assessment and supervision.