2006–2010

Origins and Resolution of Financial Crises: Lessons from the Current and Northern European Crises

Särtryck nr 2009:32

Författare: Finn Østrup, Lars Oxelheim och Clas WihlborgÅr: 2009 Publikation: Asian Economic Papers Årgång (nr): 8 (3) Sidor: 178–220

Origins and Resolution of Financial Crises: Lessons from the Current and Northern European Crises Finn Østrup, Lars Oxelheim och Clas Wihlborg


Since July 2007, the world economy has experienced a severe financial crisis that originated in the U.S. housing market. Subsequently, the crisis has spread to financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises rarely distinguishes between factors that create the original strain on the financial sector and factors that explain why these strains lead to system-wide contagion and a possible credit crunch. Most of the literature on financial crises refers to factors that cause an original disruption in the financial system. We argue that a financial crisis with its contagion within the system is caused by failures of legal, regulatory, and political institutions.

One policy implication of our view is that various forms of financial rescue would be reduced in times of crisis if appropriate controls and safeguards were already in place. We draw on experiences from the financial crises in the Nordic countries at the end of the 1980s and the beginning of the 1990s. In particular, the Swedish model for crisis resolution, which has received attention during the current crisis, is discussed to illustrate the problems policymakers face in a financial crisis without appropriate institutions. We discuss European Union approaches to the current crisis before turning to policy implications from an emerging market perspective in the current crisis.


Referens:
Østrup, Finn, Lars Oxelheim och Clas Wihlborg (2009), "Origins and Resolution of Financial Crises: Lessons from the Current and Northern European Crises". Asian Economic Papers 8(3), 178–220.

Lars Oxelheim

Kontakt

Tel: 08 665 4527
Mobil: 070 861 9361
lars.oxelheim@ifn.se

Aktuell forskare

Henrik Jordahl

Forskningsområden: Skattefinansierade tjänster, privatiseringar samt väljarbeteende.

Några av de frågor Henrik Jordahl försöker besvara i sin forskning:

  • Vad förklarar valet mellan offentlig och privat tjänsteproduktion?
  • Hur påverkar detta val tjänsternas kostnader och kvalitet?

IFN kalendarium

  • 18
    Aug

    IFN-forskare till konferens i Tokyo

    Externa aktiviteter

    Henrik Jordahl, Martin Olsson, Niclas Berggren, Lovisa Persson, Daniel Waldenström, Åsa Hansson och Karin Edmark

Institutet för Näringslivsforskning, Grevgatan 34 - 2 tr, Box 55665, SE-102 15 Stockholm, Sweden | Tel: +46-(0)8-665 45 00 | info@ifn.se