| This paper reviews the literature on financial crises. Empirical research on financial crises is covered. A summary of the main policy issues for dealing with financial crises is presented. The paper closes with an emphasis on the necessity to make a fine-tuning to the international financial system for crises prevention and resolutions and a call for more research directed at early warning systems, contagion, role of institutional factors, and testing implications of second and third-generation models of financial crises. |