An important lesson from the global financial crisis is that central banks and other regulators should have a laissez-faire attitude and let credit-driven bubbles proceed without any reaction.Intervention is always a mistake.

Question

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The global financial crisis highlighted the dangers of credit-driven bubbles and the importance of proactive intervention by central banks and regulators to mitigate their negative impacts. The laissez-faire attitude towards such bubbles was proven to be a mistake, and there is now greater recognition of the need for effective supervision and regulation of financial markets.

An Important Lesson from the Global Financial Crisis Is That