I do not know if this crisis will prove to be an inflexion point but it has certainly succeeded in pushing the policy makers to at least attempt to address some of the fundamental issues. In the aftermath of the crisis, policy makers around the world are contending with five major challenges – known commonly as the five Rs, i.e.
The annual growth rate of M1 has continued to moderate, standing at 5.9% in September 2010, while the annual growth rate of other short-term deposits has become less negative. This reflects the widening spread between interest rates paid on short-term time deposits and those paid on overnight deposits.