IDEAS home Printed from
   My bibliography  Save this article

The Global Financial Stability Architecture Fails Again: sub-prime crisis lessons for policymakers


  • Sitikantha Pattanaik


Every financial crisis leaves behind important lessons, while exposing the limitations of the policy framework for preventing a systemic crisis. The sub-prime crisis has seriously dented the credibility of every institution vested with the responsibility for promoting financial stability. Besides the immediate global policy accent on crisis management in the form of unprecedented bailouts and massive liquidity injections, considerable analysis and policy emphasis has been directed at understanding the crisis in order to identify why and where the international financial stability architecture failed, and how it could be restructured to make it more effective in preventing another major financial crisis in future. The paper outlines the causes of the crisis, highlights the important policy issues that the global policy making community has to address, and discusses several suggestions for improving the global financial stability architecture. Copyright © 2009 The Author. Journal compilation © 2009 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd.

Suggested Citation

  • Sitikantha Pattanaik, 2009. "The Global Financial Stability Architecture Fails Again: sub-prime crisis lessons for policymakers," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 23(1), pages 21-47, May.
  • Handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:21-47

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:apacel:v:23:y:2009:i:1:p:21-47. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.