At the same time, insufficient coordination at the global level allowed financial institutions to engage in regulatory arbitrage. The world economy after the crisis and the reform challenges These are the facts. The question to be addressed now relates to the features that are likely to characterise the world economy after the crisis.
Are there any important risks or potential obstacles to growth going forward? For one thing, it is natural to assume that there will be a more permanent retrenchment by consumers in countries which experienced debt-fuelled consumption booms. Households in the United States, and also in a number of other countries, are unlikely to return to their past spending patterns.