Incidentally, one factor that should not be overlooked here is the G20 states’ joint commitment at this time to not strive for unilateral advantages and to refrain from protectionist measures. While the appetite for risk had been excessively high prior to the crisis, the crisis led to a drastic reassessment and a growing aversion to risk in the financial markets.
This was particularly evident in the market for government bonds of some euro-area countries. At the same time, it was now becoming increasingly clear that some economies in the euro area were not exactly in the best of shape. Countries were vulnerable in the face of pronounced current account deficits and high reliance on capital inflows from abroad.