And this type of stimulus is automatically reversed when economic conditions improve. Only a few countries have the scope to take additional action. Where such room for manoeuvre exists, additional budgetary measures have to be targeted, timely and temporary (“three T’s”) in order to be effective.
In the current circumstances, we cannot, and should not, risk adding a fiscal crisis to the financial turmoil and economic downturn. V.  Lessons to be learned from the current financial turmoil  There is no need for a new global financial system (Bretton-Woods II) or for creating new international institutions from scratch.