In a speech addressed to the "Rencontres de l'Entreprise Européenne", ECB President Jean Claude Trichet outlined the lessons that can be learned from the economic and financial crisis.
Trichet signalled there would be a recovery in the eurozone economy next year, but hinted that similar tactics to those used in the US may have to be used.
He discussed how the credit boom had three multipliers:
- Ill-designed compensation schemes for loan managers which reinforced the shortening of lenders' horizons
- The complex structure of securitised products which made it difficult for the ultimate holders to assess the quality of the underlying investment
- The international imbalances which encouraged liquidity creation on a global scale and acted as the macroeconomic multipier