By taking this broad approach to the situation, we allow for positive interactions among the policies we put in place and have the best chance of countering the adverse feedback loop that has been an important driver of economic and financial developments since the outbreak of the crisis. Nonetheless, the success of these policies is subject to a number of risks.
Protectionism and financial nationalism One risk is that the crisis and the accompanying deterioration in economic conditions will lead to increases in protectionism and financial nationalism. In hard times countries may turn inward, focusing on the difficulties facing their own financial firms and the dislocations in their own economies.