Lessons from the financial turmoil of 2007 and 2008

This year’s RBA conference examined the financial market turmoil of 2007 and 2008 and the lessons that can be drawn for policy makers across a number of dimensions. The papers and discussions looked at the factors leading to the global financial market turmoil and its effects on the financial system and the real economy. The papers include an analysis of the role of disintermediation and capital regulation and how best to encourage financial innovation while mitigating risks. The role of central banks as providers of liquidity was also addressed.