PART B

The Origins of the Financial Crisis

This Part B discusses how imbalances and risks built up over the years and how the financial crisis, which was triggered by the subprime American loans, spread to other jurisdictions and sectors. This process of contagion generated a doom loop of subdued economic growth, weak financial sector, and stressed public accounts. Additional underlying factors such as the financial cycle and the secular rise in income and wealth inequality are discussed in an annex.