Director’s Remarks, August 2017 NIER

"A theme of the Review is the question of policy normalisation and how it ought to be managed, explained and brought about some 10 years after the start of the financial crisis. The Review publishes a number of important
papers that help us understand the ongoing impact. The financial crisis started ten years ago when BNP Paribas closed three funds in August 2007, temporarily as it turned out, when they argued that it was no longer possible
to value accurately the portfolios of assets and liabilities. From that date interbank markets froze and to some great extent are still in the midst of an Ice Age. Liquidity between private agents was severely restricted and the public sector was asked to step in and provide financial support. That early shock, like the fall Credit-Anstalt in 1931, triggered a sequence of events from which 10 years after we can still observe the repercussions."