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rodrigo de rato on earthquakes October 22, 2007

Posted by Bradley in : Uncategorized , trackback

de Rato says:

We already know that we should not try to regulate crises out of existence: that would be like trying to ban earthquakes. But the weaknesses in our infrastructure that have been exposed need to be addressed. We need to make sure that the regulatory infrastructure is strong enough and simple enough to handle crises in a globalized world…
…Perhaps most importantly, the crisis reveals the range and the risks of financial globalization. Those at risk are not just loan originators in the United States, but banks in Germany and the United Kingdom, borrowers in eastern Europe, and ultimately exporters in Asia and Africa. This points to the vital importance of multilateral cooperation on financial market issues. It is possible for a few countries to get together and come up with regulatory changes, but they are unlikely to come up with the best global solution, because they do not represent all of those affected. And without the participation and ownership of all countries who have to implement it, translating even the best-designed proposal into reality will be a very difficult task.

Of course, the IMF has a role here…

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