Working Paper
An International Rule System to Avoid Financial Instability
Kiel Working Papers, 1461
Authors
Publication Date
JEL Classification
E2
E3
E5
F33
F37
F02
F4
F5
G2
P00
Key Words
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.
