Innovation in financial markets has long raised questions about the appropriate role of regulation. Of particular concern is how the regulatory framework can serve both to encourage innovation and to support the safety and soundness of financial institutions and broader financial stability. Just as important is the need to protect the public from fraud and other abusive behavior.
the quality of public finances. In all countries, there is scope to make public finances friendlier to growth, in particular to reduce non-productive public spending and cut distortionary taxes. But not many countries have fiscal space, because their public debt is too high.