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Financial market failures and public policies

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Author Info
José Manuel González-Páramo () (European Central Bank)
Abstract

The financial turmoil, which began in the summer of 2007, has developed into one of the most disruptive financial and economic crisis experienced by the world in many decades. At the root of the crisis we find a combination of macroeconomic imbalances and microeconomic factors, including market failures and deficiencies in the design of regulatory and supervisory frameworks. This article analyses the underlying causes which contributed to the crisis and reviews the key measures adopted by public authorities to mitigate its effects as well as some of the lessons learned to make the international financial markets more resilient.

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Publisher Info
Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 190 (2009)
Issue (Month): 3 (September)
Pages: 127-156
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Handle: RePEc:hpe:journl:y:2009:v:190:i:3:p:127-156

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Related research
Keywords: Market failures; financial crisis; public policies; ECB;

Find related papers by JEL classification:
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Stephen G. Cecchetti, 2009. "Crisis and Responses: The Federal Reserve in the Early Stages of the Financial Crisis," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 51-75, Winter.
  2. Markus K. Brunnermeier & Lasse Heje Pedersen, 2009. "Market Liquidity and Funding Liquidity," Review of Financial Studies, Oxford University Press for Society for Financial Studies, vol. 22(6), pages 2201-2238, June. [Downloadable!] (restricted)
    Other versions:
  3. Adam B. Ashcraft & Til Schuermann, 2008. "Understanding the securitization of subprime mortgage credit," Staff Reports 318, Federal Reserve Bank of New York. [Downloadable!]
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This page was last updated on 2009-11-26.


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