Financial crises are a regrettable but persistent feature of today’s global economy and fi nancial system. Th ey
have economic and fi nancial consequences not only for the countries immediately involved but also for
others. As a consequence of such spillovers, crisis management and crisis prevention are an appropriate
focus of international cooperation, in particular through the auspices of global institutions such as the
International Monetary Fund (IMF). As perceived at the moment, in particular by national authorities,
each crisis is diff erent, but all crises share many common characteristics. Th e objective of policymakers and
their advisors and critics should be to learn from past crises and to establish frameworks and procedures.
Th ey should not try to prevent future crises—a commonly articulated but inherently unrealistic goal—but
should try to limit the virulence of crises and the extent of cross-border spillovers. To this end, this paper
compares and contrasts the ongoing European fi nancial crises with the Asian fi nancial crises of the late
1990s. Th ese are the two principal recent fi nancial crises that engulfed regions.
Financial crises are a regrettable but persistent feature of today’s global economy and fi nancial system. Th ey
have economic and fi nancial consequences not only for the countries immediately involved but also for
others. As a consequence of such spillovers, crisis management and crisis prevention are an appropriate
focus of international cooperation, in particular through the auspices of global institutions such as the
International Monetary Fund (IMF). As perceived at the moment, in particular by national authorities,
each crisis is diff erent, but all crises share many common characteristics. Th e objective of policymakers and
their advisors and critics should be to learn from past crises and to establish frameworks and procedures.
Th ey should not try to prevent future crises—a commonly articulated but inherently unrealistic goal—but
should try to limit the virulence of crises and the extent of cross-border spillovers. To this end, this paper
compares and contrasts the ongoing European fi nancial crises with the Asian fi nancial crises of the late
1990s. Th ese are the two principal recent fi nancial crises that engulfed regions.
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