Turmoil in financial markets is not confined to the equity markets of the advanced economies. Emerging markets have suffered a host of financial crises during the past decade. The most recent crises occurred in Turkey, Argentina, Uruguay and Brazil. In contrast to earlier financial crises, today’s investors discriminate better between individual borrowers.
Any ideas aiming to “knock down old schemes and put up new ones” or “make a fresh start” are by no means economical. They will greatly damage the common interests of the people in the world and cannot be realized in the short run.