Quo vadis, politics and banking?

Global imbalances and global excess liquidity represent a significant risk to global economic growth and financial stability. However, numerous factors that contribute to this condition are basically structural and probably will change slowly. Channels of risks can be more economic and financial market reactions. Differences in understanding and resolving instability in financial markets are current subject of clashes of opinions among many economists and government policymakers. Today, we are stuck between financially unsustainable model of global demand and requirements for politically difficult changes in the domestic fiscal and monetary politics of many countries (not only European).