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Reforming the global financial system

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  • Aizenman, Joshua

Abstract

The global financial market has been shaken throughout the nineties by a series of major financial crises. Attempts to stabilize the global system have led to large bailouts. This system cannot survive indefinitely. The willingness of taxpayers in the industrialized (OECD) countries to engage in continuing bailouts is approaching its limits. This paper has two goals. First, it briefly summarizes the evidence that financial crises may be induced by opening up developing countries to short-term capital inflows. Second, it appraises the various proposals made for mitigating the severity of financial crises.

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  • Aizenman, Joshua, 2003. "Reforming the global financial system," Santa Cruz Department of Economics, Working Paper Series qt0cg1r6q8, Department of Economics, UC Santa Cruz.
    • Handle: RePEc:cdl:ucscec:qt0cg1r6q8
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    1. Hefeker, Carsten, 2006. "Vermeidung und Bewältigung von Verschuldungskrisen: Die Rolle privater und öffentlicher Institutionen," HWWA Discussion Papers 340, Hamburg Institute of International Economics (HWWA).

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