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Modelling Financial Instability: A Survey of the Literature

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Alexandra Lai

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Paper provided by Bank of Canada in its series Working Papers with number 02-12.

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Length: 50 pages Abstract: The magnitude and frequency of recent financial crises underscore the importance of understanding financial instability for the purpose of crisis prevention and crisis management. This paper brings together and adds structure to the theoretical literature on financial instability and the implications they carry for policy-makers. In addition to clarifying the theoretical underpinnings for studying financial crises, it points to several directions for future theoretical research necessary to fill the gaps of our understanding of financial instability.
Date of creation: 2002
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Handle: RePEc:bca:bocawp:02-12

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Keywords: Financial institutions; Financial markets; Financial services;

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Find related papers by JEL classification:
G20 - Financial Economics - - Financial Institutions and Services - - - General
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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Full references

Cited by:
(explanations, 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. TCHANA TCHANA , Fulbert, 2008. "Regulation and Banking Stability: A Survey of Empirical Studies," MPRA Paper 9298, University Library of Munich, Germany, revised 30 May 2008. [Downloadable!]
  2. Eric Santor, 2003. "Banking Crises and Contagion: Empirical Evidence," Working Papers 03-1, Bank of Canada. [Downloadable!]
  3. Veronika Dolar & Césaire Meh, 2002. "Financial Structure and Economic Growth: A Non-Technical Survey," Working Papers 02-24, Bank of Canada. [Downloadable!]
  4. Fecht, Falko, 2003. "On the Stability of Different Financial Systems," Discussion Paper Series 1: Economic Studies 2003,10, Deutsche Bundesbank, Research Centre. [Downloadable!]
    Other versions:
  5. Mark Illing & Ying Liu, 2003. "An Index of Financial Stress for Canada," Working Papers 03-14, Bank of Canada. [Downloadable!]
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