The response to the crisis In this framework, after the global financial crisis and the very severe global recession in 2008–09, the full revelation of the conditions of Greek public finances produced tensions, which then spread to the economically weaker euro-area countries, characterized by excessive public or private debt, a foreign trade deficit, poor competitiveness, and low economic growth.
Indeed, in the recent months, turbulence in the global financial markets seems to have somewhat been moderated. This possibly reflects the fact that much of future risk of the Fed tapering has been priced in during the second half of 2013 outflow episodes. 12. This is, however, not to say that short-term volatilities are no longer with us.