Arbeitspapier
An International Rule System to Avoid Financial Instability
Kieler Arbeitspapiere, 1461
Autoren
Erscheinungsdatum
JEL Classification
E2
E3
E5
F33
F37
F02
F4
F5
G2
P00
In a series of summits, leading countries of the world will meet to draw up an in¬ternational arrangement for financial stability. Such a rule system should prevent a financial crisis as we have seen it in 2007 and 2008. It should include appropriate principles of mone¬tary policy, rules for financial soundness and agreements on the role of prudent regulation. The paper discusses the lessons from the subprime crisis, failures of regulation, crisis man¬agement in the US and in the EU and considers the problems that have to be solved by an in¬ternational rule system.
