Both countries suffered painful crisis that made the traditional tools for the subsequent recovery mostly unavailable. The lack of key fiscal and monetary policy instruments given the collapse and the need to regain confidence on the domestic currency after the default and the devaluation were some of the common features.
Solutions are turning more difficult to come by as the global economy seems to be moving into a new and unsettling phase in an environment of stressed trade negotiations, rising geopolitical confrontation, and limited policy space and high debt levels in several economies. General government debt of AEs as a group has surpassed 100 per cent of GDP.