Financial Crises and Adequacy of Regulatory Responses
25 Pages Posted: 2 Mar 2011
Date Written: February 28, 2011
As financial markets recover after their crisis, the academic field as well as politics have refocused on drawing the lessons from the crisis and are doing so mainly with regards to a reform in financial regulation and market transparency. In taking this approach, however, one important aspect of the reaction to the crisis is possibly being overlooked: The immediate responses the crisis triggered have rarely been discussed. This paper specifically focuses on these direct responses from central banks and market supervisory institutions to the crises. We look at a number of previous crises and discuss the effect, the timing and time-lags of these actions against their potential to support recovery or at least to ease a crisis.
Keywords: Regulation, Transmission Mechanism, Financial Intermediation
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