Skip to main content

Financial conditions now as tight as during the GFC

Financial conditions in advanced economies are now almost as tight as they were in 2009. So far, this has been the result of an economic shock rather than strains within the financial system itself and hence financial conditions are posing less of an independent headwind to growth than during the global financial crisis. However, we are now probably near the point where tight financial conditions begin to exact their own harm on economic activity. Emergency policy measures should help to alleviate these pressures, but the risk is that they prove insufficient to prevent the economic crisis morphing into a financial crisis.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access