We need a framework that helps us to look at the bigger picture. Or, to put it in more familiar terms for some of us, our macroeconomic framework needs a greater intergenerational focus.
Firstly, a banking crisis can potentially destabilise the whole financial sector. Secondly, banking, securities and insurance businesses are in some cases combined within financial conglomerates, creating potential channels for intra-group contagion. In the present period of turbulence and uncertainty, it is very important to look closely at this link.