[Figure 5]  Figure 5. Monetary and ﬁscal policy in the euro area were misaligned  The following chart illustrates the lack of coordination between monetary and fiscal policy in the euro area during and after the European sovereign debt crisis. The bars show the change in the primary budget balance as a percentage of potential output for the euro area as a whole.
These glaring problems have exposed the great havoc caused by inadequate regulation and should deserve adequate attentions and dramatic remedial measures. 2. Distribution of global imbalances  There are macro factors among the causes of current crisis. To what extent these factors contributed to the crisis has always been subject to dispute, including the role of global imbalances.