Interestingly, anecdotal evidence shows that analysts in financial intermediaries are sensitive to the downside risk of imbalances, but the conduct of the participants does not reflect the awareness. No doubt, this sense of dissonance is not new, as for example, stock markets went up after Mr. Alan Greenspan’s statement regarding irrational exuberance.
If such dissonance is true, and persists, what would be the effectiveness of public policy initiatives? Ninth, is there an advantage in assessing the non-quantifiable factors to explain the persistence of what has been stated as a stable disequilibrium to describe the current status of the global economy?