Policy implications Authorities are closely monitoring these developments and will act if necessary to offset them. 5 In the absence of decisive actions to address the underlying sovereign problems, there are several alternatives to mitigate the effects.
5  The recent communiqué of G-20 Finance Ministers and Central Bank Governors committed the G-20 to continued efforts to assess developments in global liquidity conditions (15 October 2011). 4  BIS central bankers’ speeches  The first is to limit the scale of deleveraging itself. The severity of the downturn will depend in part on how European banks delever.