【正文】 s the legal terms of syndicated loan agreements or bonds. ? In the 1980s debt crisis, the problems were freerider problem and the legal terms of syndicated loan agreements. ? In the 1990s crisis, the problems were freerider problem and the legal terms of bonds. Reducing the frequency of financial crises ? Four proposed reforms to reduce the frequency of financial crises enjoy widespread support. – First, developing countries should pursue sound macroeconomic policies, to avoid creating conditions in which overborrowing or a loss of confidence in the government’s capability could lead to a crisis. – Second, countries should improve the data that they report publicly. – Third, developing country governments should avoid shortterm borrowing denominated in foreign currencies. – Fourth, governments of developing countries should improve their regulation and supervision of banks. Reducing the frequency of financial crises ? There are other proposals, but they are more controversial. – One proposal is that developing countries should end efforts to fix or heavily manage the exchange rate values of their currencies. But a peting proposal is that developing countries should move to nearly permanently fixed exchange rates, with greater use of currency board or dollarization. – Another proposal is that the IMF should receive more resources so that it can establish large lines of credit to developing countries with sound economic policies. But the peting proposal is that the IMF should be abolished, or at least that its rescue activities be severely limited. Reducing the frequency of financial crises: bank regulation and supervision ? Banks are considered to have a special role in an economy. ? In developing countries banks are often especially important, because bank lending is also the major source of financing for local businesses. ? With weak supervision and an explicit or implicit guarantee that the government will rescue banks in trouble, banks have incentives to borrow too much internationally, and banks are more willing to take the risk of unhedged foreigncurrency liabilities. ? The proposal for better bank regulation and supervision in developing countries is not controversial. The challenge is in the implementation. Reducing the frequency of financial crises: capital controls ? Capital controls could take many forms, including an outright limit or prohibition, a tax that must be paid to the government equal to some portion of the borrowing, or a requirement that some portion of the borrowing be placed in a deposit with the country’s central bank. ? There are three ways in which such controls can reduce the risk of financial crisis. Reducing the frequency of financial crises: capital controls ? The costs of controls – A major cost of the controls is the loss of the gains from international borrowing, to the extent that they discourage capital inflows. – Capital controls are likely to lose their effectiveness over time, as investors find ways to circumvent them. – Governments can also make mistakes with controls on capital flows. – Capital controls can be a secondbest policy response. 謝謝觀看 /歡迎下載 BY FAITH I MEAN A VISION OF GOOD ONE CHERISHES AND THE ENTHUSIASM THAT PUSHES ONE TO SEEK ITS FULFILLMENT REGARDLESS OF OBSTACLES. BY FAITH I BY FAITH