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An Assessment of the Causes of Financial Instability and Possible Policy Solutions


  • Geof Mortlock


This paper provides an excellent summary of the main issues relating to financial stability and offers some suggestions on the policies that can be adopted to reduce the potential for systemic instability. It explains why financial stability is important to the economy and why governments need to attach high priority to the promotion of financial stability. It also shows how instability could be traced to the structural features of financial systems. The paper concludes with some recommendations on the policies required to promote a robust financial system.

Suggested Citation

  • Geof Mortlock, 1999. "An Assessment of the Causes of Financial Instability and Possible Policy Solutions," Occasional Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number occ30, April.
  • Handle: RePEc:sea:opaper:occ30

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