Nonetheless, in order to evaluate the impact of the Eurozone problem on the global economy, it is necessary to assess whether and to what extent European banks intensify their deleveraging overseas, given the various pressures they face within their home jurisdictions. I believe such assessment is what “macroprudence” is required to do. 3.3.
The resulting crisis first burst out in Ireland and the Southern European cluster of countries, collectively labelled the PIIGS, where there had been persistent over-stimulus and loose fiscal management.