On interest rates. On banking regulation and institutional reform. Let me be blunt. We have come to recognise that there are costs to excessive regulation in some of our labour market policies. But over the last few weeks, as the details of the world economic crisis have unfolded, we have seen the consequences of inadequate regulation or supervision in other areas.
Markets are central to the workings of our economies.
But markets cannot always be left entirely alone. There is a legitimate and necessary role for well thought out regulation if the consequences of the recent financial crisis are to be avoided in the future. The consequences of some of the recent financial failings risk being very costly for many ordinary people and families. Who have played no part in these market excesses. Who have responded to the call for greater flexibility and change in their working lives.