This site is for archive purposes. Please visit www.eliamep.gr for latest updates
Go to Top

The wisdom of crisis prevention

Şimşek, M., (2013), “The wisdom of crisis prevention”, Project Syndicate, 17 Σεπτεμβρίου.

Regardless of how differently governments may formulate policy, ensuring financial stability is their common responsibility. This calls for real and effective policy coordination and an overarching macro-prudential governance framework at both the domestic and international levels.

The simple truth is that the cost of preventing financial crises is much lower than the costs imposed by them after they erupt. After all, financial crises are directly linked to significant output declines and unemployment spikes; and, equally important, they often severely damage social cohesion.

 

Σχετικές Αναρτήσεις