A Bird’s-Eye View The Financial Crisis of 2007–2009：Causes and Remedies
The integration of global financial markets has delivered large welfare gains
through improvements in static and dynamic efficiency—the allocation
of real resources and the rate of economic growth. These achievements have,
however, come at the cost of increased systemic fragility, evidenced by the
ongoing financial crisis. We must now face the challenge of redesigning the
regulatory overlay of the global financial system in order to make it more
robust without crippling its ability to innovate and spur economic growth.