exit from the crisis, policy decisions continue to be made in an environment of high uncertainty. In the near term …The financial crisis revealed flaws in pre-crisis policy frameworks. Particular gaps included the failure of monetary … manoeuvre in event of a crisis. During the crisis, the clear pre-crisis assignments of policy instruments to objectives became …

This paper discusses modern macroeconomic and financial models in the light of the current crisis. Theory has been … revealed to be inadequate in its explanation of the origins and the nature of the crisis, as Jean-Claude Trichet the Governor … onset of a crisis but will encompass the possibility of one. The most promising candidates for such models are those which …