Nice overview of several financial crises. However, the summary of lessons learned will be interesting – Was anything actually learned? And were these particular lessons applicable to the financial mess that is unfolding before us?
Among the key lessons of previous major financial crises are:
- Globalisation has increased the frequency and spread of financial crises, but not necessarily their severity
- Early intervention by central banks is more effective in limiting their spread than later moves
- It is difficult to tell at the time whether a financial crisis will have broader economic consequences
- Regulators often cannot keep up with the pace of financial innovation that may trigger a crisis.