Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Ten years ago this month, the French bank BNP Paribas decided to limit investors' access to the money they had deposited in three funds. It was the first loud signal of the financial stress that would, a year later, send the global economy into a tailspin. In the end, the sociopolitical and institutional effects of a crisis can far outlast the economic and financial ones. All of these lessons would have been useful to advanced-economy policymakers ten years ago. When BNP Paribas froze $2.2 billion worth of funds on Aug. 9, 2007, it should have been obvious that more financial stress would be forthcoming. Indeed, advanced-country politicians today still seem to be ignoring the limitations of an economic model that relies excessively on finance to create sustainable, inclusive growth.Consequently, advanced economies took too long returning to pre-crisis GDP levels, and were unable to unleash their considerable growth potential.Policymakers in the advanced world lagged in internalizing the relevant insights from emerging economies.
Overestimating the European Union’s economy
Brexit and the global economy
Why Italy is the latest to question policy orthodoxy
FOLLOW THIS ARTICLE