Lessons and Policy Implications from the Global Financial Crisis

41 Pages Posted: 2 Mar 2010

See all articles by Luc Laeven

Luc Laeven

European Central Bank (ECB); Centre for Economic Policy Research (CEPR)

Deniz Igan

International Monetary Fund (IMF) - Financial Studies Division

Stijn Claessens

Bank for International Settlements (BIS)

Giovanni Dell'Ariccia

International Monetary Fund (IMF) - Research Department; Centre for Economic Policy Research (CEPR)

Date Written: February 2010

Abstract

The ongoing global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The crisis has brought to light a number of deficiencies in financial regulation and architecture, particularly in the treatment of systemically important financial institutions, the assessments of systemic risks and vulnerabilities, and the resolution of financial institutions. The global nature of the financial crisis has made clear that financially integrated markets, while offering many benefits, can also pose significant risks, with large real economic consequences. Deep reforms are therefore needed to the international financial architecture to safeguard the stability of an increasingly financially integrated world.

Keywords: Asset prices, Bank regulations, Bank supervision, Central bank role, Financial crisis, Financial sector, Fiscal policy, Fiscal reforms, Global Financial Crisis 2008-2009, International financial system, Intervention, Liquidity management, Price increases, Stabilization measures

Suggested Citation

Laeven, Luc A. and Igan, Deniz and Claessens, Stijn and Dell'Ariccia, Giovanni, Lessons and Policy Implications from the Global Financial Crisis (February 2010). IMF Working Papers, Vol. , pp. 1-40, 2010. Available at SSRN: https://ssrn.com/abstract=1562412

Luc A. Laeven (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Deniz Igan

International Monetary Fund (IMF) - Financial Studies Division ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Stijn Claessens

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Giovanni Dell'Ariccia

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-8135 (Phone)
202-623-4352 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
1,164
Abstract Views
3,643
rank
17,839
PlumX Metrics