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Research on the Structural Factors in Representative Financial Crises

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DOI: 10.38007/Proceedings.0001778


Zhihao Zhang

Corresponding Author

Zhihao Zhang


Abstract: A financial crisis is the touchstone for the structural resilience of a country. Therefore, analyzing the structural defects exposed in crisis will shed important lights on the design of policy tools for structural reforms. This paper performs research on four major financial crises, including the East Asian financial crisis, the Latin American Financial Crisis, the US subprime crisis, and the European sovereign debt crisis. The aim is to reveal structural factors responsible for these financial crises, discover their similarities and differences, document productive structural reforms and provide reference for the refinement of the existing benchmark structural of policy reform. Regarding the extension of the policy framework on structural reform are in threefold, three key suggestions are put forward. The first is to enhance prudential regulations over nonbank financial institutions and cross-border capital flows. The second is to improve the ability of managing the balance of International payments so as to avoid the buildup of external debt and destructive rebalancing movement. The third is to improve the coordination among countries for crisis prevention and response, especially in terms of better regional or global financial safety net, more efficient International bond market, adequate bilateral/multilateral local currency swap and Free Trade Agreement.


Keywords: Financial Crises; Structural Factor; Reform Policy