Thus, financial institutions holding a large amount of the securitized products also incurred huge losses. In these circumstances, leading financial institutions faced a management crisis and Lehman Brothers filed for insolvency in September 2008. Financial institutions mutually make various transactions, and thus many debts and credits are mingled together.
But, as we have been discussing over the two days of this workshop, the growing complexity of the world economy poses major challenges to policy makers. And, definitely, the ability and flexibility to coordinate the different branches of economic policy lay as one of the most significant.