Abstract: We seek in the conclusion to draw together the analysis of the book under four main headings, issues of finance (including equity finance, agency costs, and monetary policy issues), regulatory issues (including the safety net and prudential regulation) , financial structure and behaviour (including financial innovation and the industrial structure of financial markets), and prospects. The last named section suggested that, in our view, there are sufficient secular factors—notably competition, institutionalisation, securitisation, and the evolving role of banks to give grounds for expecting a permanent increase in financial instability. If correct, such a judgement makes development of a better understanding of the causes and consequences of financial fragility and financial instability all the more important, so as to provide macroprudential indicators of the risk of a future period of instability to governments, markets, and regulators.

Keywords: agency costs, equity finance, financial fragility, financial innovation, financial instability, financial markets, monetary policy, prudential regulation, safety net,