Preventing financial instability and currency crises

Horst Siebert

No 1401, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Financial crises can have a severe impact on the real side of the economy with countries losing up to 20 percent of GDP. The paper studies rules that prevent financial instability and currency crises. These include institutional arrangements for a solid banking system, prudent regulations and appropriate principles of monetary policy. The paper studies the role of the IMF in light of the past experience in preventing currency crises and a systemic breakdown of the world's financial system and points out necessary IMF reforms. It discusses how the IMF should adjust to the structural changes in the world economy.

Keywords: Rules for monetary stability; Hedge funds; Exchange rate crises; IMF; IMF quotas; Financial instability (search for similar items in EconPapers)
JEL-codes: E5 F33 G2 P00 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1401

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