<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>During the global financial crisis (GFC) of 2007–2009 and the currentCovid-19 debacle, central banks acted quickly, boldly, and effectively. The paper argues that they did so thanks to the lessons learned from the past financial crises, which provided them with opportunities to reconsider their previous beliefs. A case in point is the banking crisis in the United States during the Great Depression of the 1930s that taught central banks to act rapidly and decisively in order to prevent an initial liquidity crisis from escalating into a solvency crisis leading to bankruptcies of banks with potentially disastrous consequences for the entire economy. The paper revisits the consequences of the currency crises of the 1990s, which transformed exchange rate regimes across the world: the EMS one of 1992–1993 that accelerated the launch of the euro, and the Asian one of 1997–1998 resulted in the proliferation of floating exchange rates in emerging economies.</p>
</abstract>

During the global financial crisis (GFC) of 2007–2009 and the currentCovid-19 debacle, central banks acted quickly, boldly, and effectively. The paper argues that they did so thanks to the lessons learned from the past financial crises, which provided them with opportunities to reconsider their previous beliefs. A case in point is the banking crisis in the United States during the Great Depression of the 1930s that taught central banks to act rapidly and decisively in order to prevent an initial liquidity crisis from escalating into a solvency crisis leading to bankruptcies of banks with potentially disastrous consequences for the entire economy. The paper revisits the consequences of the currency crises of the 1990s, which transformed exchange rate regimes across the world: the EMS one of 1992–1993 that accelerated the launch of the euro, and the Asian one of 1997–1998 resulted in the proliferation of floating exchange rates in emerging economies.

What Did Central Banks Learn from Financial Crises?

Studies in Logic, Grammar and Rhetoric

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"What Did Central Banks Learn from Financial Crises?"}

During the global financial crisis (GFC) of 2007–2009 and the currentCovid-19 debacle, central banks acted quickly, boldly, and effectively. The paper argues...

What Did Central Banks Learn from Financial Crises?

Published Online: Dec 30, 2021

Page range: 497 - 512

DOI: https://doi.org/10.2478/slgr-2021-0028

Keywords
banking crisis, financial crises, central banks

© 2021 Andrzej Sławiński, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

What Did Central Banks Learn from Financial Crises?

Published Online: Dec 30, 2021

Page range: 497 - 512

DOI: https://doi.org/10.2478/slgr-2021-0028

Keywordsbanking crisis, financial crises, central banks

© 2021 Andrzej Sławiński, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
banking crisis, financial crises, central banks