Skip to main content

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated Cookie policy, Privacy policy and Terms & Conditions

576e190446f86f380e450222_dr4322.jpg

The Fallen Heroes of the Financial Crisis

When the scale of the financial crisis became clear last year, many were certain that it would be managed badly. But, in view of the vilification nowadays of those who pulled the world economy back from the abyss, perhaps we should be grateful that it was managed at all.

PARIS – Oscar Wilde said that experience is the name we give to our mistakes. Last year, we tried to analyze the errors that led the world into economic crisis. Now it is time to analyze the mistakes we made when trying to get out of it.

When the scale of the crisis became clear last year, many were certain that it would be managed badly. But perhaps we should be grateful that it was managed at all. Unlike in the 1930’s, decision-makers acted quickly, ignoring dogmas that warned against rapid intervention.

Moreover, they knew that, in contrast to the inter-war period, close international coordination would be needed. In 2008-2009, the influence of the G-20 grew, at the expense of the G-8. People became aware of the need for truly global governance. And, at long last, a number of proposals emerged aimed at making such governance a reality.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

https://prosyn.org/jlkZrKu;