No wonder, other central banks, with the exception of few such as Federal Reserve and Bank of England, have either further tightened their monetary policy or kept on hold to existing levels of tightening. Developing understanding of the origins of the financial crisis and adequacy of its policy responses is critical.
Analysts have largely identified collapsing US sub-prime mortgage market as the key cause for financial market turmoil. However, the sub-prime mortgage debacle appears more of a symptom rather than a cause of this evolving credit crisis.