The sole note-issuing authority at the time was the National Bank of Greece (or Ethniki, as most in this audience know her). But Ethniki also happened to be the country’s largest commercial bank, with strong ties to business and politics.
Third, in advanced economies, the crisis spread from the financial sector to the real sector whereas in emerging economies, the direction was the reverse – the fault lines spread from the real sector to the financial sector. Finally, much of our pressures came from the supply side, not the demand side.