What might be the impact on the regional and global balance of power? One important aspect in this context are the huge internal imbalances in the leading Asian emerging economies. These imbalances may absorb much of the political capacities in order to contain potential regional and social tensions and conflicts. 2.
Another important development has been the improved sophistication of a macro-prudential function developed by Central Banks, Supervisors and International Institutions to analyse and monitor all the major risks at the level of the system as a whole. The use of models of the financial sector allows the simulation of various shocks to conduct stress tests at that level.