It is interesting, though, that in recent years the “zero lower bound” for nominal interest rates, which as students we would have been taught about as “the liquidity trap”, is no longer a curiosum in the textbook from a bygone era, but has actually been binding in several major countries.
Concluding remarks Let me conclude with a few remarks on what I believe is essential to achieve effective reform of financial regulation – and why it is essential to keep the momentum. Effective financial reform needs perseverance. Achieving reform is complicated; there are many stakeholders, many legal issues and many international linkages.