New-fangled finance has its flaws, from the procyclicality of its leverage to its fiendish complexity.

ECONOMIST: Shifting the balance

Measures that reduce the procyclicality of the financial system will help stabilise global liquidity flows.

FORBES: Bank Of Canada's Carney Warns About Loss Of Global Liquidity

However, as we consider ways to strengthen the system for the future in light of what we have learned over the past year, we should critically examine capital regulations, provisioning policies, and other rules applied to financial institutions to determine whether, collectively, they increase the procyclicality of credit extension beyond the point that is best for the system as a whole.

FORBES: Transcript