If the balance-sheet adjustment is one cause of protracted "chronic illness," the liquidity crisis since the autumn of 2008 additionally brought a strong "acute pain" to the global economy. The global economy has been picking up recently, and that is because the acute pain has been dissipating for the following three reasons.
First, thanks to the ample liquidity provision by central banks around the world, financial markets have gradually restored stability. Policies implemented in the United States and Europe such as government guarantee of financial institutions' debts as well as expansion of deposits to be protected have also staved off further turmoil in the financial markets.