How Costly?”, in S. Claessens et al., eds., Financial Crises, Consequences, and Policy Responses, forthcoming, IMF.
2  BIS central bankers’ speeches  There may also have been a false sense of security resulting from the successful track record of monetary and macroeconomic policies.7 As a result, the markets placed their trust in central banks’ ability to take care of liquidity if markets were to be hit by serious shocks.