The sub-prime crisis shows that it is not enough for Australia to regulate its own financial system well, according to this paper. It is also in Australia’s interests to work towards forms of global coordination, global monitoring and global crisis response which lessen the frequency and duration of these financial shocks. Most of the obvious necessary measures, including more searching IMF oversight, changes to ratings agencies practices, enhancements in balance sheet transparency, stronger national oversight, greater cross border co-ordination among central banks and regulatory agencies and so forth, have already been recommended in recent months either by international agencies or national governments. It remains to be seen whether the shock the sub-prime crisis has been enough to encourage international agreement.