The need for risk prevention

The subprime crisis in 2008-2009 and then the COVID crisis in 2020 led governments and central banks to implement large-scale defensive policies: increased public spending and sharp increase in fiscal deficits, strong money creation and very low interest rates. These defensive policies have been effective enough to limit the negative effects of crises. Other crises may come; for example health, climate, financial or cybersecurity crises. The problem is that if a new crisis occurs, it will no longer be possible to implement defensive economic policies again, given the size of the public debt and the money supply, and the very low level of interest rates. If defensive economic policies can no longer be used once the crisis is here, the only solution is to work as much as possible on preventing crises, by reducing the risk of a pandemic, accelerating the energy transition, avoiding financial instability, protecting companies and governments from cyber-attacks , etc.