Financial Stability and Public Policy: An Overview
MPRA Paper from University Library of Munich, Germany
The paper reviews the sources of market failure in financial institutions and markets and what can be done to alleviate them. It examines game-theoretic explanations for financial instability, in particular the role of asymmetric information in generating destabilizing behavior. In the area of remedies, the paper analyses the potential contribution of official safety nets and what can be done to minimize the associated moral hazard. It discusses the role of public policy in this context.
Keywords: financial stability; financial institutions; financial markets; financial infrastructure (search for similar items in EconPapers)
JEL-codes: G00 G01 E60 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published in Reserve Bank of India Occasional Papers 1 (2001): pp. 109-131
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/19757/1/MPRA_paper_19757.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:19757
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().