Working Paper: NBER ID: w9297
Authors: Stanley Fischer
Abstract: Between December 1994 and March 1999, Mexico, Thailand, Indonesia, Korea, Malaysia, Russia and Brazil experienced major financial crises which were associated with massive recessions and extreme movements of exchange rates. Similar crises have threatened Turkey and Argentina (2000 and 2001) and most recently Brazil (again). This article discusses the reform of the international financial system with a focus on the role of the IMF - reforms directed at crisis prevention, and those intended to improve the responses to crises. The article concludes with an appraisal of what has been achieved, and what remains to be done to make the international financial system safer.
Keywords: No keywords provided
JEL Codes: E5; E6; F3; F4; G1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| pegged exchange rate systems (F33) | financial crises (G01) |
| fiscal policy adjustments (E62) | financial stability (G28) |
| impossible trinity (D10) | financial crises (G01) |
| inadequate fiscal measures (E62) | unsustainable debt dynamics (H63) |
| unsustainable debt dynamics (H63) | external funding crises (H12) |