Working Paper

An International Rule System to Avoid Financial Instability

Author

  • Horst Siebert
Publication Date

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.

Info

JEL Classification
E2, E3, E5, F33, F37, F02, F4, F5, G2, P00

Key Words

  • crisis management
  • elements of an international rule system
  • failures of regulation
  • Financial instability
  • lessons from the subprime crisis
  • role of the IMF