To cap it all, conservative ideas of deregulation and unfettered free-market capitalism have been brought into disrepute by the financial turmoil south of the border.
Buffeted by the international financial turmoil, Brazil, having doubled interest rates to bolster its overvalued currency, turned to long-term reforms to cut its budget deficit.
Ireland's banking sector has been badly hit by the international financial turmoil, the collapse of a domestic property bubble and a deep recession in the former "Celtic Tiger" economy.
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The financial market turmoil triggered by the subprime mess is setting new lows for financial services stocks.
Most alarmingly, Washington combats the recession by rehashing the policies which engineered financial turmoil: low rates, weak dollars and large deficits.
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However, its share price was flat as these sources of income could be badly affected by the current turmoil in financial markets.
This has been brought home many times in recent years, from the bond-market crash in 1994, to the turmoil in financial markets sparked by Russia's default last year, to the dramatic widening of credit spreads in America this year.
The Fed's statement took note of the global stresses that have been intensified by the turmoil in Cyprus, which is trying to stave off financial ruin.
However, Dai-Ichi Life Research Institute's Mr Shimamine warned that growth may be hampered by "yen strength and financial turmoil in the US and Europe".
Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.
Nor can Indonesia's economic malaise be blamed, since the Moluccas have been relatively unaffected by Asia's financial turmoil.
Had there been no world financial turmoil the Fed would surely have raised rates by now to cool the excessive pace of growth.
And much of the turmoil was caused by irresponsibility on the part of banks and financial institutions.
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Much of the turmoil of this recession was caused by the irresponsibility of banks and financial institutions on Wall Street.
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Suppose, for example, that in the autumn of last year, when there were fears that global financial turmoil would drag the American economy into recession, policymakers had responded by cutting taxes rather than interest rates.
Recent market turmoil has required the Federal Reserve to adjust some of the mechanisms by which it provides liquidity to the financial system.
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