I would now like to turn to the part that monetary policy plays in this respect. In order to identify this contribution, an analysis of the monetary policy in the years preceding the crisis is essential.
All too often, we have too much regulation on the books and too little regulation in practice, with the worst of the regulated finding unscrupulous ways around the regulation while the honest are stymied. Even opening a business legitimately requires an enormous number of clearances and paperwork.