Preventing Financial Crises: An International Perspective
55 Pages Posted: 17 Jul 2000 Last revised: 14 Sep 2010
Date Written: February 1994
In recent years the possibility of an international financial crisis has increased because of greater liquidity of international financial markets, an increase in corporate indebtedness and the decline of the banking industry. Using an asymmetric information analysis, this paper outlines what signals a central bank might look for to determine if a financial crisis is occurring and then describes how central banks might operate and cooperate to prevent financial crises.
Suggested Citation: Suggested Citation