III If it appears rather unlikely that the crises in parts of the world economy will spread to America and Europe through the real economy, is it not possible – given a loss in confidence – that this could happen through the channel of the financial markets?
Keyword ‘credit crunch’ A number of observers fear, for example, that the current uncertainties in the financial markets might cause financial institutions to refuse financial resources even to first class borrowers in future – with matching implications for investment and growth.