Unintended Consequences of Crisis Management

This contribution attempts to decipher the largely unintended, still predictable consequences
of crisis management in the global economy. In a series of improvised, case-bycase
and unilaterally demand-focused measures, governments tried to extend the Keynesian
arsenal to a system whose basic features are unlike those of the national economy.
While the collapse of output and employment, on par with the Great Depression, could
indeed be averted, conditions for the resumption of sustainable finance and growth have
been undermined.