Recently, for example, Professor Dick Herring identified a number of potential financial developments that would help improve New Zealand’s financial stability, including longer-term mortgages and various investment products (including mortgage securitisation). 7  The role of domestic capital markets A well functioning capital market offers a number of advantages.
In the end, well-functioning institutions at both national and European levels – including, in particular, forceful application of the macro-economic imbalances procedure and credible enforcement of the fiscal rules – are essential, alongside the ECB as the guarantor of a single and stable currency.