Summary |
The modern financial markets are immensely complex – possibly too complex – for any one person to really understand them. Interconnections create systemic risks that are extraordinarily difficult to figure out. Recent financial crisis highlight the potential fragility of the international monetary and financial system. The book examines the anatomy and propagation of international financial crisis, assesses the adequacy of current regulatory and supervisory practices, and suggests measures that would help to avoid and contain financial crisis. Although the near-term macroeconomic effects of the decline appear to have been limited, the long-term implications might depend upon the responses of the policy-makers and effectiveness of international policy coordination. The book offers a combination of analytical vigor and practical relevance and would be of interest to all those concerned with the stability of the international financial markets.
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