Financial Crises: Cases of Market Failure

A. S. Bhalla
Additional contact information
A. S. Bhalla: University of Cambridge

Chapter 3 in Market or Government Failures?, 2001, pp 45-64 from Palgrave Macmillan

Abstract: Abstract The quotation above sums up the purpose of this chapter. In Chapter 1 we described differences between financial and commodity markets. Chapter 2 discussed theories of market and government failures. This chapter shows that failures in private banking occur in the same way (and often for the same reasons) as do government failures. The factors contributing to the collapse of many financial agencies were precisely the absence of appropriate mechanisms of control and supervision, poor-quality management, lack of accountability, absence of clear goals and strategy, and a failure to terminate an unsuccessful activity despite frequent warnings (equivalent to consumer response à la Wolf) — factors commonly attributed to non-market failures.

Keywords: Financial Market; Financial Crisis; Financial Institution; Market Failure; Capital Control (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62920-2_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230629202

DOI: 10.1057/9780230629202_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().