Only under pressure from the markets do governments seem to find the strength and the consensus to adopt the necessary measures to ensure financial stability. This increases the scale of the adjustment required and consequently the negative repercussions for the economy.
The doubts about the ability of governments to take the necessary measures in turn increases the distrust of financial markets and tends to intensify the crisis. How does this vicious circle come about? Let me try to identify some factors that characterise the problems that our societies face in reaching a consensus on decisive action in a crisis.