The Nature of the Crisis

This was a crisis of the system as a whole,according to Mohamed El-Erian.The policy response goes beyond an attempt to stabilize markets.We are in the midst of a major policy regime shift.It will be a gradual and fragile process,a protracted one.The policy regime shift cannot repair all the damage the system suffered.Policy response can change the drivers of markets.No one seems to be turning to the International Monetary Fund for advice.This is the sort of crisis that is at the heart of what the IMF was set up to control,in Mr.El-Erian's opinion.