It is my pleasure to join President McDonough and our colleaguesfrom the Bank of Japan and the Bank of England inhosting this timely conference. Capital, of course, is a topicof never-ending importance to bankers and their counterparties,not to mention the regulators and central bankerswhose job...

This article reviews the causes of the crisis, explores the nature of financial intermediation, presents a set of reforms to overcome the deficiencies of the regulatory structure and examines the role of monetary policy in the current crisis. It concludes that it is essential to increase...