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The Crisis: Policy Lessons and Policy Challenges

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  • Agnès Bénassy-Quéré
  • Benoît Coeuré
  • Pierre Jacquet
  • Jean Pisani-Ferry

Abstract

We review the competing explanations of the 2007-2008 global crisis, recall how governments around the world had to depart from established policy stances, and reflect on the legacy of the crisis both in terms of future challenges and changes in policy doctrine. The G-20 has addressed important regulatory and macro-financial dimensions of the crisis, but it has left difficult questions unanswered. We review some of these incoming challenges such as moral hazard in the post-bail-out world, the trade-off between financial stability and the cost of capital, the feasibility for central banks to manage their new financial stability mandate, and the effectiveness of peer review to address global imbalances.

Suggested Citation

  • Agnès Bénassy-Quéré & Benoît Coeuré & Pierre Jacquet & Jean Pisani-Ferry, 2009. "The Crisis: Policy Lessons and Policy Challenges," Working Papers 2009-28, CEPII research center.
  • Handle: RePEc:cii:cepidt:2009-28
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    Cited by:

    1. Delphine Irac & Jimmy Lopez, 2015. "Euro area structural convergence? A multi-criterion cluster analysis," International Economics, CEPII research center, issue 143, pages 1-22.
    2. World Bank, 2012. "Montenegro After the Crisis : Towards a Smaller and More Efficient Government," World Bank Other Operational Studies 12821, The World Bank.
    3. Antoine Bouveret & Stéphane Colliac, 2010. "Commentaire : Déséquilibres mondiaux, errances de la régulation et crise de la finance globalisée," Économie et Statistique, Programme National Persée, vol. 438(1), pages 105-110.

    More about this item

    Keywords

    GLOBAL FINANCIAL CRISIS; ECONOMIC POLICY; FINANCIAL REGULATION; BLACK SWAN; CRISIS;

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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