As a result, the robustness of the global financial system has been greatly enhanced by, for example, higher capital and liquidity reserve levels at financial institutions, more options for liquidity provisioning by central banks, better legal frameworks for resolving financial institutions, and enhanced communications and cooperation among authorities.
And it is a well-known fact that this process has, through history, been accompanied by the build-up and bursting of bubbles – usually at large, sometimes very large costs. Prominent examples include the Tulip Mania, the South Sea Bubble, the Roaring Twenties Bubble and the Dot-Com Bubble. Hence there has always been a trade-off.