Only a few days to go: We’re raising £25,000 to keep TheyWorkForYou running and make sure people across the UK can hold their elected representatives to account.Donate to our crowdfunder
There may well be some issues that it will have to consider as a sub-committee, and I am sure it will want to work out some tools and some ways forward. At this stage, when do not have a clear definitionalthough we have a common-sense understandingand when we are looking at what is frankly still an emerging phenomenon in the international financial markets and world economy, I do not want to say that this whole area, which is key to political decision making and to how the international community works, will be put at arms length in the way in which interest rates have successfully been. If there were one lever that could work in relation to international financial stability, we might want to use that, give it a tight policy remit and say, We dont want it to go above or below a certain level, and set that out. The conceptual tools simply are not there and, in those terms, it is right to have a substantial sub-committee set up in this way, with a remit to deal with the matter, a reporting line and a much sharper focus. I certainly accept that the structures we had previously did not serve us well. The warning signs might have been there, but no one saw them. Action was not taken until the crisis started to ripple through from some of the financial institutions and the United States.
I think that we have the right structure here. It might not be the worlds most wonderful structure, but it is the right one for the present circumstances. It will be bolstered by the increasing focus on financial stability and the increasing pressure that I am sure there will be from Parliament and elsewhere to make sure that the structure delivers and that if there are warning signs, they are seen and acted on.