Financial Stability and Public Policy: An Overview
AbstractThe paper reviews the sources of market failure in financial institutions and markets and what can be done to alleviate them. It examines game-theoretic explanations for financial instability, in particular the role of asymmetric information in generating destabilizing behavior. In the area of remedies, the paper analyses the potential contribution of official safety nets and what can be done to minimize the associated moral hazard. It discusses the role of public policy in this context.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19757.
Date of creation: Jan 2001
Date of revision:
financial stability; financial institutions; financial markets; financial infrastructure;
Find related papers by JEL classification:
- G00 - Financial Economics - - General - - - General
- G01 - Financial Economics - - General - - - Financial Crises
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
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