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Economic Commentary

Financial Crises and Market Regulation

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.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Jordan, Jerry L. 1999. “Financial Crises and Market Regulation.” Federal Reserve Bank of Cleveland, Economic Commentary 10/1/1999.