To be sure, financial crises typically occur because people assume that easy credit will last forever. As a result, over-borrowing and asset price bubbles emerge, which eventually end in implosions that impair the functioning of the economy, as witnessed in the last global financial meltdown. Hence, possible capital reversal calls for prudence on the part of economic agents in Mexico.
Introductory Statement and Q&A, Press Conference, 25 July 2019. [16] Lagarde, C. (2019). Q&A at the Committee on Economic and Monetary Affairs, 2 December 2019. [17] FT editorial (2020). “ECB must make in ation targeting t for purpose”, 23 January 2020.