Crisis, Response, Improvement, Complacency, Repeat

I can t help feeling reminded of what our veteran Japan expert Robert Feldman has dubbed the CRIC-cycle, which typically goes through four stages Crisis, Response, Improvement, Complacency before morphing into the next crisis. Japan has gone through several such cycles over the past two decades, and I worry that we have now arrived in the complacency stage of the euro area s first big one.

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