The German system. In Germany, a stability council must approve state budgets.

The euro system was designed to deliver prosperity and stability for all.

Global financial stability must be secured by a better functioning international monetary system.

For example, in addition to its price stability mandate, the Bank of England has been given the new task of maintaining the stability of the financial system.

Moreover, the ECB already bears de facto responsibility for the stability of the eurozone s banking system.

A simpler and more transparent system would ultimately lead to more lending and greater stability, not less.

Indeed, China s rulers have already stated that the new exchange rate system will aim at maintaining currency stability.

Thermodynamic stability occurs when a system is in its lowest energy state, or chemical equilibrium with its environment.

At the same time, regulatory regimes have been toughened everywhere to prevent banks from jeopardizing the financial system again. For example, in addition to its price stability mandate, the Bank of England has been given the new task of maintaining the stability of the financial system.

Like other emerging markets, China is committed to financial stability and playing its role in reforming the global financial system.

But haircuts in the case of a solvency crisis are indispensable for the stability of the European financial system itself.

If that single stability system, that brain that flies that aircraft, fails, or if the engine fails, that vehicle crashes.

A key element to strengthening stability in the country is integrating Afghanistan into the Central Asian political and economic system.

Then, in the 1970's, capital flows started up again, and there were again threats to the stability of the system.

Restoring stability and a fair democratic system to Moldova is important, first and foremost, because Moldovans deserve a government that is accountable.

The stability of the international financial system today depends on the willingness of countries with rigid exchange rates to allow greater flexibility.

Still, they do fulfill a useful function by bundling interests and issues, thereby providing an element of stability in the political system.

We believe the presence of the United Nations system will foster confidence and guarantee stability during the critical months following its withdrawal.

Problems might originate at the national level, but, owing to monetary union, they quickly threaten the stability of the entire eurozone banking system.

China s financial stability is also under threat, as lenders turn to unofficial channels to circumvent tighter government regulations on the formal banking system.

The euro crisis can end only when debt problems on Europe s periphery can no longer threaten overall stability of the eurozone s financial system.

In financial markets, local optimization seems to lead to excessive leverage and other forms of risk taking that undermine the stability of the system.

Institutions such as the International Monetary Fund, in its Global Financial Stability Reviews (GFSR), set out a confident story of a self equilibrating system.

China s financial stability is also under threat, as lenders turn to unofficial channels to circumvent tighter government regulations on the formal banking system. Perhaps the biggest risks stem from China s rapidly growing shadow banking system.

The bill also provides for the creation of a state information system that ensures for the network's overall stability, and combines an autonomous domain name system (DNS) with IP address assignment and traffic monitoring capabilities.

After inflation and unstable government, Charles de Gaulle rebuilt the French political system, but also the idea of the French nation, by championing currency stability.

The reason is that healthy spending and production no longer depend only on the soundness of the banking system and public confidence in its stability.

But looking after the stability of the global financial system, including the assessment of exchange rate policies and global payment imbalances, is a different responsibility.

This lack of action reflects the increased complexity and linkages of the global financial system, and the absence of an effective anchor for financial stability.

If that single stability system, that brain that flies that aircraft, fails, or if the engine fails, that vehicle crashes. There is no option to that.

Somewhere in the system, accountability for stability and sustainability in terms of asset valuation, leverage, and balance sheets will need to be assigned and taken seriously.

Nor are they set to become a benevolent, altruistic power, ready to use their new strength and reputation to improve the stability of the international system.

As long as successive EU summits persist in this mistake, the crisis will fester and spread, eventually threatening the stability of the eurozone s entire financial system.

However, Basel 3 only indirectly addresses the shadow banking system, despite its role in triggering the crisis and the future threats it poses for financial stability.

Thus, the IMF s role in the international monetary system should not go beyond applying its key instruments for promoting macroeconomic stability surveillance and economic policy advice.

Consider stability.

After the collapse of the Bretton Woods exchange rate regime in the early 1970 s, it was widely supposed that a flexible currency system would bring more stability.

A strengthened role in ensuring financial stability would be a logical complement to the existing, but too narrow mandate the IMF has for overseeing the international monetary system.

Such regulations should be a key part of any system to ensure financial stability resorting to them only as a last resort is a recipe for continued instability.

A new global Financial Stability Board is trying to make sense of all this, and also to work out a new macro prudential mechanism reflecting system wide risks.

After initial dislocations, the eventual outcome would fulfill John Maynard Keynes dream of an international currency system in which both creditors and debtors share responsibility for maintaining stability.

China s Stability Gambit

Engineering Financial Stability

On the other side are the partisans of financial stability, for whom confidence in the financial system is too precious to be endangered, even with the best possible intentions.

A better starting point, I believe, is the notion of shared responsibility for the stability of the system and its social benefits shared, that is, by participants and regulators.