Here, I have focused primarily on the reforms that are most important for the resilience of the large interconnected banking organizations at the core of our system. Outside of this group, I favor better tailoring the regulatory framework for our smaller banking firms so as to decrease regulatory burden.
A recent speech by Ben Bernanke 4 observed that financial market globalisation has made the Fed’s analysis much more complex. He notes that even for the US there is no such thing as total monetary independence. For example, correlations between long term interest rates in the US and other industrial countries have risen significantly.