In discussing the respective roles of the public and private sectors, the Deputy Governor makes two points:
- There are a number of respects in which pure laissez-faire can no longer form an appropriate model for the private sector which must find a way, consonant with maintaining healthy competition, of assuming responsibility for solving problems in circumstances when, for each enterprise, immediate short-run interests might point in the opposite direction.
- If we are to look to industry, commerce and the financial services to take on these responsibilities it is essential that the private sector is allowed to be strong and unfettered enough to cope. Here, the authorities have responsibilities too.
Three areas of particular concern to the Bank are used to illustrate these points, namely the problems of international sovereign debt, regulation of the securities market and the difficulties at lohnson Matthey Bankers..