The notions of market and regulatory failures are at the heart of the Public Economics field. The current crisis also represents an extraordinary example of how stabilising the international and domestic financial systems and invigorating them in the medium-term required and will continue to demand cooperation among different public policies, ranging from macroeconomic to liquidity-related, regulatory and supervisory policies.
I will structure my intervention in four parts. I will devote the first part to analysing the underlying causes that have contributed to the crisis. Later, I will broadly describe the policy responses given by the major players in the global economy from four different angles: liquidity policy, monetary policy, fiscal policy and regulatory reform.