: The economy slowly returns to normal, often taking 5–10 years for GDP to recover . 🛠️ The Four Policy Levers
: Debts rise faster than incomes, fueled by high leverage and soaring asset prices .
To manage a crisis, governments and central banks typically use a combination of these four tools:
: Leveraged buying peaks; central banks tighten policy, and debt service costs rise .
: A modern housing-led crisis that required massive government bailouts and "quantitative easing" .