The crisis of 2007

- Central Banking Journal
- 01 Nov 2007

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International response

Problems in the American subprime mortgage sector and the ensuing disruption of credit markets around the world have propelled central banks to the television prime time news bulletins and to front pages of newspapers. As the turmoil in the money and credit markets reached a critical phase in the second week of August, the first instinct from central banks was to send the message to investors that "everything was under control" and that indeed the re-pricing of risk should

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