In a downturn that lasts, say, nine months, a bank will likely let its clients ride out the recession. But in a prolonged crisis, the story is more complex. Credit can become tough to find. Anecdotally, we know that otherwise solvent and creditworthy firms were left with considerably less credit than they needed.
It is suggested that these countries could boost expenditures to some extent in areas where social returns are high like education, health, infrastructure and social security. Given economic interlinkages, all countries and regions will have a role to play by increasing the flexibility of their economies and adapting to changing global demand patterns.