This chapter reviews how various mechanisms of prudential oversight over the financial system can help make an economy more resistant to contagious financial shocks.1 Other policy measures that play a useful role in some circumstances — such as capital controls, lender of last resort arrangements and the choice of exchange rate regime — are mentioned only tangentially as they are covered in the chapter by Chang and Majnoni.
|Title of host publication
|International Financial Contagion
|Stijn Claessens, Kristin J. Forbes
|Place of Publication
|Number of pages
|Published - 2001