Preparing for the Next Financial Crisis

The previous chapters identied the main risks threatening nancial stability

and the reforms that have been introduced since the GFC, in order to make the

nancial system safer. However, the nancial system is constantly evolving. Most

economists would agree that the reforms have, to some extent, ensured that the

system would be able to cope with a crisis of the same type, which may be less

likely to occur in the rst place. However, the response would be less positive in

the case of a crisis of a “new” type.

The global crisis triggered by Covid-19 in 2020 is likely to be such a crisis.

However, given the lack of hindsight, it is dicult to draw nal conclusions. At

the time of writing, it appears like a case study where public intervention ...