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Financial Crises and Market Regulation

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Financial crises are inevitable. Both government intervention and market innovations can influence the frequency and severity of these episodes, but they cannot eliminate them. Evolution toward stronger political and economic institutions is a discovery process, and the sometimes dramatic financial market adjustments labeled “crises” are an unavoidable part of that process.

Financial crises are inevitable. Both government intervention and market innovations can influence the frequency and severity of these episodes, but they cannot eliminate them. Evolution toward stronger political and economic institutions is a discovery process, and the sometimes dramatic financial market adjustments labeled “crises” are an unavoidable part of that process.


Suggested citation: Jordan, Jerry L., 1999. "Financial Crises and Market Regulation," Federal Reserve Bank of Cleveland, Economic Commentary, 10.01.1999.

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