Even so, neither economic growth nor financial markets in the different regions of the world moved in lockstep in the past, nor are they expected to do so across all business cycles. It is far from clear that the divergences in performance we have seen of late, which are tentative in any event, represent distinct breaks from historical benchmarks.
Going by the Newton’s third law of motion (every action has an equal and opposite reaction), it is fair to expect that reaction (policy response to the crisis) matches action (the crisis), in magnitude. Many, however, hold the view that this law has been violated inasmuch as the policy reaction is a case of overkill.