Second, in order to adjust expectations the necessary measures must be adopted in a credible way. The perception of markets and society must be that the effort is not only serious but that it will be enough to reverse the situation.
In order to achieve this it is essential to: •  Rely on an uninhibited, far reaching diagnosis about the sources of the crisis;  •  Respond quickly and decisively, directing policy response to address the fundamental causes of the crisis;  •  Governments should be aware – as I am sure they are most of the time – that given the eruption of the crisis they will be facing a credibility deficit.