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Measures including cuts in interest rates, collective action to help third countries and more prudential supervision of the banking sector should be taken immediately.
Abandoning the project cost Vale several billion dollars a blow that could have been avoided had it taken a more prudential approach to investing in its neighbor.
More "prudential oversight" of banks was called for, but no specific proposals were offered on how the oversight or increased disclosure would occur.
The business secretary, who called in his New Statesman article for "more prudential borrowing by councils for house building", will also raise doubts about Osborne's views on the housing market.
What's more, Prudential said the deal's failure would cost about 450 million pounds, or $662 million, which includes a break fee of $230.6 million.
He adds: "The more controversial question is whether the government should not switch but should borrow more, at current very low interest rates, in order to finance more capital spending: building of schools and colleges; small road and rail projects; more prudential borrowing by councils for house building.
Similar(53)
At one level, the case for more intrusive prudential supervision seems weak.
Today, as it emerges early from a state bail-out precipitated by its large portfolio of American mortgages, it is again an example this time of the sort of institution that new, more demanding prudential rules encourage.
The capital-standards regime also needs to become more macro-prudential.
After liberalisation in the 1990s, when managing risk became more arduous, and prudential rules were introduced, their health began to fail.
Instead, they advocate what may be called enlightened anthropocentrism (or, perhaps more appropriately called, prudential anthropocentrism).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com