The negative spillovers have been felt all over the euro area during the double dip recession, albeit at different degrees. What can we learn from this crisis? Apart from market-based risk-sharing mechanisms, EMU needs a fiscal framework that combines risk reduction and risk-sharing, in other words: discipline and solidarity.
The growth of the non-bank finance sector has taken different speeds and forms in different countries and regions. A notable example is of course China, where the size of the non-bank finance sector was about 10% relative to annual GDP a decade ago. Now the figure is over 100%.