Ingves: A Cure for Crises: Confidence, Confidence and Trust
We are currently in a financial crisis of historic proportions. I have been working with the resolution of financial crises for almost two decades and I have experienced many difficult situations from within. Although financial crises have many differences, they also share causes and cures. A cure is made up of two ingredients: 1) regain confidence to resolve a crisis, which should be done by convincingly dealing with impaired assets; and 2) preserve confidence to prevent a crisis from repeating itself. With regard to the current crisis, the latter implies that liquidity and capital regulation should be reformed. Given the international dimension of this crisis, the cure for this crisis also involves a third component – trust between authorities to enhance cross-border crisis management. Finally, I stress the need for immediate action. We must take the opportunity to make reforms while the political will is present.
You will find the whole speech in the pdf-file below.
