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The Role of State Intervention in the Financial Sector: Crisis Prevention, Containment, and Resolution

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  • Yoon Je Cho

Abstract

This paper discusses the role of state intervention for prevention, containment, and resolution of financial crises based mainly on the Korean experience during the 1997 Asian financial crisis. Crises in emerging market and developing economies tend to be more complicated than those faced by advanced economies because they are twin crises: financial and currency crises. Such crises require the development of a comprehensive strategy covering the stabilization of the domestic financial market and the foreign exchange market, closely coordinated responses by different government bodies, an extraordinary effort for financial restructuring, and the introduction of a new regulatory framework. [ADBI Working Paper 196]

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  • Yoon Je Cho, 2010. "The Role of State Intervention in the Financial Sector: Crisis Prevention, Containment, and Resolution," Working Papers id:3017, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3017
    Note: Institutional Papers
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    References listed on IDEAS

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    Cited by:

    1. Morgan, Peter J. & Lamberte , Mario, 2012. "Strengthening Financial Infrastructure," ADBI Working Papers 345, Asian Development Bank Institute.

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    Keywords

    state intervention; prevention; containment; Asian; financial. currency; stabilization; framework;
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