The fact that markets were not functioning well was apparent in a range of other metrics, including: the sharp rise in bid-offer spreads for AGS and semis; a sharp fall in the ability to trade in bond futures without moving the price; and the breakdown of various no-arbitrage relationships, including between bond futures and the underlying bonds that they reference (Graph 6).
The key challenge in order to reinforce sustainable growth and job creation is to accelerate structural reforms, as the financial crisis has negatively affected the productive capacity of our economies. In the case of product markets, policies that enhance competition and innovation are urgently needed to speed up restructuring and investment and to create new business opportunities.