The events of 1997 and 1998 demonstrated how rapidly stresses in one economy can be transmitted to others. They also underlined just how important are strong institutions, strong balance sheets - in both the public and the private sector - and strong risk management practices to ensuring robustness in the face of shocks.
For example, the financial crisis may have altered expectations of longer-run income growth and attitudes toward risk such that consumers may be more cautious about spending gains in income and wealth that are perceived to be temporary. Modest growth in consumer spending would be significant because strength in other categories of aggregate demand remains elusive.