New crises, new rules
The rich world’s central bankers want common standards to help emerging economies deal with their banking crises. Help is certainly needed
THE sums are eye-popping: $250 billion spent cleaning up banking crises in emerging markets since 1980. That is roughly the annual output of Belgium, one of the world's top 20 economies. In Mexico alone, the banking crisis that followed the peso devaluation of 1994 is likely to cost Jose Public $30 billion. And for anyone who had hoped Mexico's mishap might be the last of its kind, disappointment arrives daily.
This article appeared in the Leaders section of the print edition under the headline “New crises, new rules”
From the April 12th 1997 edition
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