By contrast, the financial market and other economic activities are much more globalized now. Under those circumstances, the misconduct of monetary and fiscal policy, which leads to a deterioration in confidence in money, would affect long-term interest rates immediately. Fourth, the relative size of a domestic financial market was smaller in the early 1930s than today, and the government securities markets were less developed.
The slow recovery from the global crisis forces us to revisit our growth strategies and take a closer look at their impact on the whole of the societies we are expected to serve, not just the prosperous, but also the poor and the excluded – who are showing increasing signs of impatience as they wait for the elusive magic of trickle-down to improve their lot.