The opening and deregulation of the domestic financial market and the global financial integration has increased the risk of a financial crisis, much like the recent global financial crisis that resuscitated the debate on the role of the state in the financial sector. This book discusses the role of state intervention for prevention, containment, and resolution of financial crisis. The nature of crisis witnessed in emerging markets and developing economies tends to be more complicated than the one faced by advanced economies as it comes as a double-crisis, in both finance and currency. Thus, it requires development of a comprehensive strategy covering not only for the stabilization of the domestic financial market but foreign exchange market, close coordination among responses of different government bodies, an extraordinary effort for financial restructuring, and an introduction of new regulatory framework. The analysis of this book, based on the Korean experience, should help shed some light to policy makers, regulators, and academics who endeavor to seek an appropriate role of government during times of crisis.
