Credibility gap
October 9, 2008 THE assurance by the freshly inducted Finance Advisor that there is no chance of default is quite timely in view of the banking crisis in the US, which has sent tremors all over the world. What is needed is a revival of trust in the financial system. A lack of it can cause bank runs of the type one witnessed on Wednesday. Further assurances that there would be neither freezing of foreign exchange accounts nor sealing of lockers are, indeed, welcome gestures. However, effective measures to deal with the economic malaise need to be taken to restore public confidence.
