The free-market paradigm came under more-vigorous attack after the collapse of the world's major economies in the 1930s. As the global depression deepened, the seeming failure of competitive markets to restore full employment perplexed economists until John Maynard Keynes offered an explanation that was to influence policy practitioners for generations to come.
And the Bank for International Settlements itself in its own research had been the most lucid of the international institutions. The course of action to be undertaken Looking ahead, what actions should be undertaken to redress imbalances in the global financial system, in macroeconomic policies and in international governance? For the financial system, there is a need for more stringent regulation.