•  This sudden reversal led to a negative feedback loop between banks and public finances, exacerbating the effects of financial instability on the real economy. •  In some countries, such as Spain, the sudden reversal led to a collapse in demand, a collapse in asset prices and bank distress. The bank distress then fed back into a fiscal and, ultimately, sovereign crisis.
Eric Usher – and we are very proud to welcome him here on our premises - will explain the thinking behind UNEP FI’s conclusion that in their assessment a transition to a new finance paradigm is required. That’s right, ladies and gentleman, a new paradigm no less!