Financial exuberance can thus have severe negative implications, both at the individual and at the aggregate level. Understanding the factors that prevent excessive financial risk Seite 2 von 27 Deutsche Bundesbank, Directorate General Communications Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Germany, Tel: +49 (0)69 9566 3511 or 3512, Fax: +49 (0)69 9566 3077 presse@bundesbank.de, www.bundesbank.de Reproduction permitted only if source is stated.
At the heart of these efforts was the Fiscal Responsibility and Budget Management (FRBM) Act which mandated a calibrated road map towards fiscal sustainability. The depth and extraordinary impact of this crisis, however, clearly indicated the need for counter cyclical public spending.