Our economic models and analytical tools were not designed to analyze crises like the present one, whose origin lies in a public health problem and not in the economic or financial cycle. In what follows, I would like to list several lessons along these lines.
Failure to capture major on-and off-balance sheet risks as well as derivative related exposures, was also a key destabilising factor. The provisions of IAS 39-Financial Instruments-Recognition and Measurement issued by the International Accounting Standards Board (IASB), establishes the principles for recognizing and measuring financial assets and financial liabilities.