Almost all the prognostic analyses/reports on the crisis agree that current financial regulations tend to encourage pro-cyclical risk taking which increases both the likelihood as well as accentuates the severity of financial crises. One suggestion is to establish capital benchmarks as a broad range, rather than as a point prescription, within which capital ratios should be managed.
That’s why it’s essential that participants should not have dogmatic monetary policy views that cannot be adapted when the facts warrant it. I think this method worked really well.