In addition to this bill, at least three other bills have been introduced into Congress within the past five months that propose specific rules for electronic signatures. The Electronic Financial Services Efficiency Act introduced by Representatives Baker and Dreier (H.R. 2937) on November 8, 1997 is by far the most comprehensive of the three. The Baker bill would place electronic authentication methods on par with traditional written signatures provided that they reliably establish the identity of the sender or maker of the electronic communication, and reliably verify that the message has not been altered. Public key cryptography and signature dynamics technology are specifically recognized as trustworthy electronic authentication techniques. Other technologies would be deemed satisfactory if they meet certain criteria. One aspect of the Baker bill which has generated a lot of interest is its establishment of an industry self-regulatory organization along the lines of the National Association of Securities Dealers. Any person or entity -- not just a certification authority -- wishing to provide electronic authentication services in the United States would have to be registered with the SRO. The SRO would establish a committee, supervised by the Department of Treasury, to develop, refine, and apply standards respecting the role and responsibilities of parties involved in electronic authentication services and the licensing and registration of certification authorities.
However, in more recent weeks, the more positive data in the US has resulted in some flow-back to the US markets. This more variegated and dynamic landscape means financial markets are likely to remain volatile in the months ahead. We need to be prepared to manage this volatility. 9. Second, policymakers not only have to grapple with the aftermath of the financial crisis, but also the medium term structural challenges facing their countries. There are significant differences in the pattern of saving and investment across economies. Many of these reflect structural factors such as demographics, as well as the particular path of growth and development. To sustain global growth, some changes in the global saving-investment pattern will be necessary. This cannot happen overnight. Instead, we need sustained and coordinated policy action across all the major economies. The IMF and global bodies like the G20 will have to continue to focus and provide direction on these structural issues. 10. Third, the financial crisis shows how critical the nexus is between the health of the financial system and the health of the economy. Global regulatory reforms are necessary to address many of the weaknesses uncovered during the crisis. Yet, we have to tread a fine balance to build not just have a resilient global financial system, but also one that can support sustainable economic growth. Given the varying pace of economic recovery and the different phases of economic transition, regulations need to be appropriate to local circumstances, while preventing regulatory arbitrage.