In addition there can be broad welfare consequences in terms of declining physical and mental health, regardless of whether an individual is directly affected by job, income or housing loss.6 The impact of a crisis on the wider economy is also long lasting.
Recovery can take a decade or more and is halting in nature.7 We have seen in the aftermath of the GFC, monetary and fiscal policy responses –bail-outs and quantitative easing – have important implications for transfers of wealth between the private and public sector, social inequality and inter-generational welfare.