This response, which is rational for the individual, leads to subdued consumption, postponed investments and jobs not created at the macroeconomic level. Without growth, debt reduction becomes an uphill struggle. Today, the international and domestic uncertainties reinforce each other; we are living through a highly complex crisis of confidence.
In respect of the global economy, there is no proven recipe for stimulating the recovery of developed countries as they run out of ammunition for fiscal and monetary stabilisation and struggle with high debt. In the past, the recovery of countries hit by debt crises typically occurred along an exportdriven growth path, which was supported by a favourable international economic climate.