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Financial crises and financial market regulation: the long record of an ‘emerger’

Author

Listed:
  • Sophia Lazaretou

    (Bank of Greece)

Abstract
The main goal of this paper is to trace the long record of financial crises and financial market regulation from the perspective of an emerging economy. Two questions are addressed: first, what explains the incidence and severity of financial crises in an emerging market economy? And, second, what is the role of learning: how does the country learn from its past experience in financial crises to improve institutions and develop better techniques so as to successfully manage successive crisis events? To answer the above questions, I first present evidence on financial crises in Greece over a long time span. Greece has been chosen as an appropriate case-study since it is a country with a rich history in financial crises. I try to identify a variety of crisis events, thus providing a chronology. Moreover, I present a number of facts about the incidence, frequency and severity of crises events. Second, I discuss the key determinants of the crises, which are closely related to country-specific factors, such as credit expansion, fiscal imbalances, and the limited reserve coverage of the monetary base. And third, I deal with the evolution of the regulation. I place emphasis on the post-crisis regulatory responses that changed the country’s institutional developments.

Suggested Citation

  • Sophia Lazaretou, 2011. "Financial crises and financial market regulation: the long record of an ‘emerger’," Working Papers 140, Bank of Greece.
    • Handle: RePEc:bog:wpaper:140
    as

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    File URL: http://www.bankofgreece.gr/BogEkdoseis/Paper2011140.pdf
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    References listed on IDEAS

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    Cited by:

    1. George Chouliarakis & Sophia Lazaretou, 2014. "Deja vu? The Greek crisis experience, the 2010s versus the 1930s. Lessons from history," Working Papers 176, Bank of Greece.
    2. Michael D. Bordo & Christopher M. Meissner, 2015. "Growing Up to Stability? Financial Globalization, Financial Development and Financial Crises," NBER Working Papers 21287, National Bureau of Economic Research, Inc.
    3. Vogiazas, Sophocles & Alexiou, Constantinos, 2014. "‘Putting The Horse Before The Cart’: A Pre-Crisis Panel Data Investigation Of Greek Bank’S Credit Growth," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 10(1-2), January.

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    More about this item

    Keywords

    financial crises; emerging economies; sudden stops; financial market regulation.;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • N2 - Economic History - - Financial Markets and Institutions

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