Moreover, in the beginning of the crisis, the general public was strongly opposed to the idea of injecting public funds. Therefore, business conditions of financial institutions deteriorated further until the injection was realized. In China, a deposit insurance system was established in 2015. Now, it is important to develop financial safety nets further while the financial system is sound.
It is surprising, in this crisis as well, how fast the climate of opinion changed among investors; it suggests a formation of expectations based on the performance of the macro-economic variables only in the short run and on the attitudes of other market participants. The extrapolative nature of expectations compounds fluctuations in exchange rates and securities prices.