the IMF Fiscal Monitor on Addressing Fiscal Challenges to Reduce Economic Risks, September 2011, and E. Farhi, G. Gopinath and O. Itskhoki (2011), “Fiscal Devaluations”, NBER Working Paper No. 17662. 2  BIS central bankers’ speeches  produces substantial, beneficial effects in the long run.
In this regard I feel the most significant lesson that we have learnt from recent events is the importance of fundamentals in risk management. For instance there is a basic rule since inception of banks which says “do not put all your eggs in one basket”. Had this simple rule been followed, many institutions could have avoided huge losses.