This set of policy tools, in combination with the bold action taken by euro area governments over recent months, is essential to revive a resource that has become much too scarce in recent months: confidence in the future. The origins of the financial crisis To set the scene, let me recall the origins of the current crisis.
Over the past ten years, we have witnessed a dramatic shift of focus in the financial sector – away from facilitating trade and real investment towards unfettered speculation and financial gambling. Managing genuine economic risk gradually ceased to be the main concern of international finance.