*  *  *  In the preparation of this speech I have benefited of extensive discussions with Pietro Catte and Patrizio Pagano. I am solely responsible, however, of the views here presented.
The financial crisis and its macroeconomic roots Even though the crisis caught a large part of the economics profession by surprise, this was not because economists and policy makers had entirely failed to notice the growing elements of vulnerability in the foundations of the global economic expansion.