Economic governance in times of crisis

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The 2008 financial crisis, which is typical of internationalised and interdependent modern finance, finds its inception in the economic deregulation applied since the 1970s. International institutions and regulation systems have quickly found themselves powerless and overwhelmed by the crisis’ scope. States and Central banks finally had to intervene to restore trust and manage the crisis, urgently by necessity, but still resorting to cooperation to give short-term and long-term answers. A new economic governance is now being established: it allows a much greater and renewed importance to public institutions. Yet, the failure of regulation was due to an excessive rigidity rather than to the lack of it. The new financial system of the 21st century will be born out of the travails of the crisis.