And, they have to convince taxpayers, and their representatives, that there is an even worse solution than the least worst option that they have chosen. The third constraint that policy-makers have to take into account nowadays is the scarcity of resources available to tackle multi-dimensional problems like those posed by the crisis.
At the outset, in autumn 2008, European countries were able, for example, to stabilise the situation by providing public guarantees to banks. Ireland was one of the first countries to make such a commitment. In the US the TARP was adopted, with the initial aim being to purchase distressed assets from banks and thus relieve their balance sheets.