Financial Crises: Causes, Consequences, and Policy Responses

by International Monetary Fund, Stijn Claessens, M. Ayhan Kose

Financial Crises: Causes, Consequences, and Policy Responses provides a comprehensive overview of research into financial crises and policy lessons learned. The book covers a wide range of crises, including banking, balance of payments, and sovereign debt crises. It begins with an overview of the various types of crises and introduces a comprehensive database of crises. Broad lessons on crisis prevention and management, as well as the short-term economic effects of crises, recessions, and recoveries are discussed. The medium-term effects of financial crises on economic growth, as well as policy measures to prevent booms, mitigate busts, and avoid crises are analyzed. Finally, policy measures for mitigating the adverse impact of crises and ways to restructure banks, households, and sovereigns are presented. The collection of research in this book provides an excellent overview of critical policy areas, with valuable lessons on how countries can better monitor their economies and financial systems.

667 pages, Paperback

First published February 1, 2014

Reviews

[Richard Marney · Rating 4 out of 5]

Another in the essential reads on the topic produced by the Fund over the years. This most recent effort refines the relevant theory and updates the empirics. The result is an effective effort to sharpen the toolkit with the objective of assisting policy makers and market participants in deciphering the causes and identifying key actions to contain and then remedy the fall-out from, financial crises.