“Siamo qua in cerca d’un autore!D’un autore? Che autore?D’uno qualunque, signore.
Introduction: new actors on a new stage
It is commonplace to assert that the crisis that started in 2007 has changed the world financial andeconomic stage in a fundamental way. Less obvious is to explain how and why. A key novelty is theincreased interconnection among phenomena previously deemed unrelated. This interconnectionpredates the crisis, but before 2007 few were aware of its true extent. It has several dimensions.
, first of all: the ability of asset markets to transmit shocks across space wasknown, but few anticipated, only three years ago, that financial integration was so advanced that acrisis in the US would automatically lead to a crisis in Europe in a matter of days.
, second: once the financial turmoil hit, it spared nobody: banks, otherintermediaries, corporates, households, real estate, stocks, eventually governments and their debt.And in the end, unavoidably,
: in a crisis so extensive and devastating allinstruments of economic policy (monetary, banking and financial, fiscal in all its ramifications) arecalled into action, often together, to rescue and to repair. The faith in a pre-arranged and rigidassignment of policy instruments to specific goals is an intellectual casualty of this crisis.Another key aspect of the picture is the birth, or move to centre-stage, of new actors on the worldeconomic scene.
actors, most evidently: the main emerging countries, previously invited –when lucky – to sit in a dinner or speak at a seminar at the margin of a G7, since 2008 have becomeequal partners in the global economic decision making process. More than that: they have played, aswe shall discuss, a fundamental role in providing much needed support to the global economy duringthe 2009 recession. The simple fact that a contribution of the emerging countries to solving the crisisin the euro area has been discussed, as indeed happened 2011, is indicative of the magnitude of thechange. But, in addition to
actors, we are now witnessing the rise of a whole new class of
actors. The financial architecture reform underway has produced a new family of financial market regulators or empowered existing ones. The Financial Stability Forum has changedname and grown in size and scope. Systemic risk councils have been created on both sides of the
1 'We are here in search of an author! An author? Which author? Whoever, sir'. Quote from Luigi Pirandello’s play
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