But it got worse, far worse, and new, more drastic measures were needed. That doesn’t prove that initial policies and measures were wrong. Rather, it illustrates the determination of authorities to fight this crisis. But it also shows something else, that fighting this crisis demands international coordination. At best, uncoordinated nationally implemented measures may be effective in solving national problems.
But a number of those measures unintentionally triggered problems in other countries. The chain effect of raising the deposit guarantee scheme protection is a clear example. The introduction of higher levels of depositor protection triggered a flow of savings out of other countries, forcing other governments to implement similar policies. Coordination could have prevented negative side effects.