Some reflections on the post-crisis period

People have already begun to talk about the post-crisis era only a year and some change after the global financial crisis erupted. But what is the fundamental reason why the post-crisis era has come much faster than expected? An accurate analysis of the magnitude of the crisis and its negative impacts will help people better gauge the pulse of the global economy.

Countries across the world have undergone a rollercoaster ride from an initial underestimation to an overestimation due to the global financial crisis. After the sub-prime mortgage crisis began to finally wreak havoc in the United States, widespread opinion was that its impact would be confined to the world's largest economy and would not affect other regions.

But as the crisis quickly spread globally, public pessimism began to escalate and some critics believed it would be worse than the Great Depression. That proved to be an exaggeration.