Jul 25, 2012
Oseme Finance -
The global financial and economic crisis of 2008 to present revealed that the pre-crisis GFA was flawed both in its implementation and in its structure. With the benefit of hindsight, there were warning signs and policy mistakes and misjudgments.
The GFA was revealed to be structurally flawed. Its coordination mechanisms failed to resolve cross-border problems without the resort to national ring-fencing, unprecedented volumes of liquidity provided by Central Banks to markets and volumes of credit guarantees and recapitalizations provided by national treasuries to individual financial institutions not previously witnessed on a global scale.