Back then we also had to learn our lesson about implementing a sound regulatory regime; that it needs to be a catalyst, not an impediment to the infant capital market. But it turned out that regulation was not the only key to a successful currency and functioning bond market in the emerging post-war economy in Germany.
At least equally important was the existence of an independent central bank that could credibly commit to its single mandate of ensuring price stability. During the 1950s, such credible commitment to stable prices, combined with sound fiscal policies, was instrumental in anchoring inflation expectations and in achieving the kind of macroeconomic stabilisation that formed the foundation of the “economic miracle” I just mentioned.