There is no doubt that financial and real imbalances played major roles in causing the crisis and worsening its severity. We should, however, acknowledge that a big gap between reality and our perception of it sowed the seeds of the crisis. We need, therefore, to reset our understanding of the real economy and the financial system.
In fact, this has been how our predecessors overcome the economic crisis of the 20th century. The Great Depression changed the world as they knew it, and put their knowledge and ideas to the test. But, they were willing and brave enough to revise their views and beliefs to lay the foundation of new framework – “macro” economics.