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This paper provides an overview of the period prior to the recent global crisis, and the policies that were adopted around the world in response to the crisis. It highlights a number of key issues regarding economic and financial policies that governments have faced both globally and nationally. These are related to the management of boom and bust episodes that deserve more attention in policy circles in the future. At times, externalities resulting from the policies of large countries have caused global markets to suffer various types of "Shocks". 2008 and now 2009 have reminded us that what happens in large countries could have large impacts on the rest of the world.
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