OECD Journal: Financial Market Trends

Frequency
Semiannual
ISSN: 
1995-2872 (online)
ISSN: 
1995-2864 (print)
http://dx.doi.org/10.1787/19952872
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The articles in Financial Market Trends focus on trends, structural issues and developments in financial markets and the financial sector.

Article
 

The current financial crisis

Causes and policy issues You do not have access to this content

English
 
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    http://oecd.metastore.ingenta.com/content/2708021ec001.pdf
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Author(s):
Adrian Blundell-Wignall, Paul Atkinson, Se Hoon Lee
07 Jan 2009
Pages:
26
Bibliographic information
No.:
10,
Volume:
2008,
Issue:
2
Pages:
1–21
http://dx.doi.org/10.1787/fmt-v2008-art10-en

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This article treats some ideas and issues that are part of ongoing reflection at the OECD. They were first raised in a major research article for the Reserve Bank of Australia conference in July 2008, and benefited from policy discussion in and around that conference. One fundamental cause of the crisis was a change in the business model of banking, mixing credit with equity culture. When this model was combined with complex interactions from incentives emanating from macro policies, changes in regulations, taxation, and corporate governance, the current crisis became the inevitable result. The paper points to the need for far-reaching reform for a more sustainable situation in the future.
 
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