tailieunhanh - On the Resolution of Financial Crises: The Swedish Experience

At the end of Q3 2010, the global ETF industry had $ trillion in assets under management, 85% in plain-vanilla ETFs referenced to equity indices (Graph 1), which is equivalent to 5% of global mutual fund assets and 2% of global equity market capitalisation. The industry has grown at an average of 40% a year over the past 10 years, which dwarfs the growth rate of both global mutual funds and equity markets (around 5% a year). Most ETFs are listed on US and European exchanges, but they provide exposure to a much more diverse range of markets (., two. | I FEDERAL RESERVE BANK OF CLEVELAND papers POLICY DISCUSSION PAPERS On the Resolution of Financial Crises The Swedish Experience By O. Emre Ergungor POLICY DISCUSSION PAPER NUMBER 21 JUNE 2007 I FEDERAL RESERVE BANK OF CLEVELAND On the Resolution of Financial Crises The Swedish Experience By O. Emre Ergungor Sweden was one of the Scandinavian countries experiencing a severe financial crisis In the late 1980s and early 1990s. I review the policy choices and external factors that pushed the country s financial system over the edge and then examine the steps the government took to make its resolution of the crisis one of the most successful in the past 30 years. O. Emre Ergungor is an economist at the Federal Reserve Bank of Cleveland. Materials may be reprinted provided that the source is credited. Please send copies of reprinted materials to the editor. POLICY DISCUSSION PAPERS Policy Discussion Papers are published by the Research Department of the Federal Reserve Bank of Cleveland. To receive copies or to be placed on the mailing list e-mail your request to 4dsubscriptions@ or fax it to 216-579-3050. Please send your questions comments and suggestions to us at editor@. Policy Discussion Papers are available on the Cleveland Fed s site on the World Wide Web Research. Views stated in Policy Discussion Papers are those of the authors and not necessarily those of the Federal Reserve Bank of Cleveland or of the Board of Governors of the Federal Reserve System. ISSN 1528-4344 I FEDERAL RESERVE BANK OF CLEVELAND Introduction In the late 1980s and early 1990s the Scandinavian countries underwent their most severe financial crisis of the postwar period. While such crises are not rare what sets these countries apart is their freedom from the institutional weaknesses that dogged less-developed countries in the 1970s and emerging-market economies in the 1990s slow bankruptcy procedures lax law enforcement regulators who lacked the