As we approach the third anniversary of the outbreak of the international financial crisis, the horizon remains unclear. First, the financial turbulence of 2007 evolved into what has come to be called the “Great Recession,” with an unprecedented decline in activity and significant job losses.
Subsequently, the exceptional fiscal stimulus measures designed to combat it have generated unsustainable fiscal imbalances and now require a radical shift in economic policy from an expansionary stance to a restrictive one.
