The European Systemic Risk Board (ESRB), which I chair together with Mervyn King, and the European Supervisory Authorities (ESAs) – the three new authorities created for the European banking sector, insurance and occupational pensions, and capital markets – have taken up their work at the beginning of this year.
In particular: –  The demand for US dollar reserves should in principle become less elastic, thus diminishing the United States’ “exorbitant privilege” and allowing market discipline to work more symmetrically.