IMF staff discussion note · 2011 · 33 citations · 0 references
Social SciencesFinanceFinancial MarketsInternational EconomicsInternational FinanceFinancial CrisesFinancial GovernanceFinancial RiskGlobal FinanceSovereign DebtSovereign Risk AnalysisContingent CapitalFinancial Stability OversightGlobal Financial CrisisGlobal Financial GovernanceMoral Hazard AnalysisResolution FrameworksSovereign Risk AssessmentSovereign Support Mechanisms
The causes of the global financial crisis were multi-faceted but revealed still unresolved weaknesses in national and international financial oversight and resolution frameworks. In particular, many governments in the crisis-hit countries had to provide unprecedented levels of support to contain the crisis and protect financial stability. These interventions have not only contributed to a significant increase in sovereign exposures but, in many countries, they have also risked weakening market discipline and worsening moral hazard.