The financial crisis and implications for policy making
Monday, May 25th, 2009
Belgian Finance Minister Didier Reynders
Coming back to the financial crisis, how did we get there? How could such sophisticated machinery fall apart so rapidly?
The jury is still out as to the importance of each specific ingredient. But it is clear by now that a combination of factors, both at the macro and micro levels, together led to a huge underestimation of risks and, ultimately, to a total loss of confidence in the financial system. The whole world was looking at the future through a rear mirror of low defaults and high growth. (more…)
