The recent financial crisis shook not only the global economy but also conventionalwisdom about economic policy. After the collapse of Lehman Brothers in September 2008, policy makersreversed course and acted on an unprecedented scale. The policy response was remarkable both for itsmagnitude and for the variety of measures undertaken. This book examines both the major role centralbanks played in the crisis and the role they might play in preventing or preparing for futurecrises.
The contributors focus on monetary policy, the new area ofmacroprudential policy, and issues of exchange rates, capital flows, and banking and financialmarkets. They look at the experiences of both developed and emerging economies, considering whysome, including Israel and Australia, suffered only mild effects while others--Ireland forexample--plunged into severe financial crisis.
