Abstract
The problems of boom-bust patterns of financial markets have a long history (Kindleberger 1978; Reinhart and Rogoff 2009). Its frequency has been high since the 1970s, as a result of both financial liberalization and inadequate prudential regulation and supervision. Indeed, the North Atlantic financial crisis1 of 2007–09 provided further evidence that unless properly regulated, financial markets are prone to harmful boom-bust patterns, often leading to costly crises.2 In contrast, when financial systems had had simpler structures and were better regulated, as in the quarter of a century that followed the Second World War, crises were infrequent.
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© 2014 Stephany Griffith-Jones and José Antonio Ocampo
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Griffith-Jones, S., Ocampo, J.A. (2014). Global Governance for Financial Stability. In: Papadimitriou, D.B. (eds) Contributions to Economic Theory, Policy, Development and Finance. Levy Institute Advanced Research in Economic Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9781137450968_13
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DOI: https://doi.org/10.1057/9781137450968_13
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