Three solutions to reduce the risk of a financial crisis

We believe that in order to reduce the risk of a financial crisis, three developments, which are indeed backward-looking, in different areas would be very useful: Central banks should return to "leaning against the wind", i.e. a gradually less expansionary monetary policy in growth periods to prevent excessive debt and asset price bubbles; Obstacles must be placed on the free international capital flows, particularly to emerging countries, to prevent excessive variability in capital flows and, as a result, in exchange rates, inflation, interest rates and growth; Active, and not passive, portfolio management should be developed to reduce herd behaviour in financial markets and excessive variability in financial asset prices.