The demands on governments multiply under such circumstances, at a time when excessive fiscal austerity is the order of the day in the advanced economies, with large cutbacks in government spending and provision of basic social services. Unless governments can get growth going again, social and political disaffection is likely to spread, as we have already seen in a number of countries in Europe.
After the subprime crisis, financial experts around the world have started to find out the reasons why it happened and proposed ways to prevent similar mistake from happening again. There are a lot of findings but they all boil down to a big topic – “risk management”.