Many learning opportunities missed

We have been misreading the lessons from financial crises since the late 1970s

WALTER Lippmann said in 1933: "There are good crises and there are bad crises. Every crisis breaks a deadlock and sets events in motion. It is either a disaster or an opportunity. A bad crisis is one in which no one has the power to make good use of the opportunity and therefore it ends in disaster. A good crisis is one in which the power and the will to seize the opportunity are in being. Out of such a crisis come solutions."

The world has experienced one financial crisis after another over the last few decades: runaway inflation, the stockmarket crash of 1987, the East Asian crisis of the late 1990s, the popping of the dotcom bubble in the face of accounting scandals and, finally, the crisis...

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