The FSB has also devoted considerable energies to exploring sources of procyclicality in the financial system, which are those practices and structures that tend to amplify rather than dampen the cycles characteristic of financial markets, and to identifying possible strategies to reduce their effects, which were often quite visible during the recent crisis.
The origins of the current crisis The current problems in these countries have a number of root causes which have led to significant macroeconomic imbalances and vulnerabilities. In the years prior to the recent crisis, price and costs developments diverged noticeably within the euro area over extended periods of time.