•  And the recovery has been marked by periodic bouts of nervousness in financial markets, including the one we are seeing just now. I will have more to say about that later. One general indicator that things are still some way short of normality is the level of global interest rates, which are still at exceptionally low levels to support growth.
Finally, we are left with the need to address the moral hazard, in particular on non-bank financial intermediation, created by the expectation of a “central bank put”. With the outbreak of the Covid-19 pandemic, investor risk aversion has increased rapidly, leading to a surging demand for cash and to the exit from equity and fixed income markets in search of short-term, risk-free assets.