More generally, empirical evidence shows that systemic banking  BIS central bankers’ speeches  1  crises typically affect the structure and dynamics of economic systems over very protracted periods. 1 Before venturing into the future, let me recall the main elements of the pre-crisis economic and financial paradigm, i.e. the “old normal”.   Reduced macroeconomic volatility.
Prior to the deterioration of the crisis in October 2008, our economies experienced two decades of significantly reduced macroeconomic volatility. A number of empirical studies documented a significant decline in the variability of both economic growth and inflation in almost all major industrialised economies.