In a world divided into blocs, we would also and above all lose that wealth of mutual trust, however fragile and uncertain, that, as well as being indispensable for nations to co-exist peacefully, is an irreplaceable foundation for tackling the key challenges for future generations. Limiting global warming, fighting against extreme poverty and combating pandemics are formidable objectives that no country can face alone.
At the same time, financial liberalisation and deregulation encouraged financial leverage and rapid credit growth. The ten years since that eruption has been a changeable period of deleveraging and de-risking, with a number of different phases. The first phase was the immediate liquidity crisis triggered by the turning of the global financial cycle and the subsequent collapse of Lehman Brothers.