Unfortunately, authorities then were ill-positioned to coordinate an effective international response, as years of bitter wrangling over World War I international debts and reparations had all but destroyed the mutual trust upon which coordination depends. In the recent episode, policymakers, bankers, and business people recognized that the world’s economies and financial systems would sink or swim together.
But let me now take a closer look at the developments in financial markets over the last months. I will then turn to the various ways in which we have addressed the challenges arising from the crisis. Before I conclude, I will also explain to you what I think needs to be done in the coming months. 1.