Resolutions of weak institutions [E-Book]: Lessons learned from previous crises / Stephen Lumpkin
The present financial crisis may be added to a growing list of episodes worldwide in which financial sector problems have become systemic in nature. Many OECD countries have been affected, either directly or through the transmission of problems cross-border. Most financial crises share a number of c...
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Full text |
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Personal Name(s): | Lumpkin, Stephen. |
Imprint: |
Paris :
OECD Publishing,
2009
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Physical Description: |
47 p. |
Note: |
englisch |
DOI: |
10.1787/fmt-v2008-art13-en |
Keywords: |
Finance and Investment |
The present financial crisis may be added to a growing list of episodes worldwide in which financial sector problems have become systemic in nature. Many OECD countries have been affected, either directly or through the transmission of problems cross-border. Most financial crises share a number of common elements.For instance, financial innovation has often played a role in distress episodes, in many cases, having much to do with their idiosyncratic aspects. For example, structured credit products and the latest incarnation of the originate-and-distribute model of intermediation have been at the epicentre of the current crisis. It differs from other crisis episodes in having a sub-component of the residential mortgage sector as its trigger, while previous crises have more often been prompted by problems in the commercial mortgage market and with corporate clients. |