It has inflated the bubble and made the bursting of that bubble more dangerous. The Great Depression of the 1930s was intensified by protectionism. Today, fortunately, we might not have those protectionist reflexes, but trade looks likely to be a major propagator of the crisis, because of the contraction in trade finance resulting from the lack of trust within and between financial systems.
The adjustment in global imbalances risks being abrupt and disorderly. Financial links need to be re-established rapidly, not only within countries but also among countries. Thank you for your attention. BIS Review 156/2008  5