ABSTRACT
Leaders and central bankers from advanced and emerging countries responded collectively with a burst of crisis management, architectural and institutional creation and a series of significant regulatory policy reforms aimed at enhancing the financial stability of markets and firms across the globe. Crises matter for paradigm shifts. They clarify failures, drive actors together, open up narrative and policy options, create negotiating win spaces, hasten decision making and remove extraneous influences and blocking factors. A shift in worldview that occurs via international cooperative mechanisms and institutions can also be reflected in national actions and policy choices. Indeed, national actions, by lead regulators in key jurisdictions, are supporting the continued reassertion of state authority over markets, and many steps reinforce the strength and stability of the global financial system and national financial markets. The creation of the FSB, 'effectively a SWAT team', by the G20, advised by the central banking community, which led the technical reform process, was an institutional masterstroke.
