Developing a Framework for Effective Financial Crisis Management

Abstract

This article discusses the roles and responsibilities of the various agencies that are part of the financial system safety net, and it sets out a framework for the decision-making process for these actors in the management of a financial crisis. In this context, the article discusses issues of micro-and macro-prudential oversight and argues that more needs to be done to ensure accountability, independence, transparency and integrity of the various actors of the financial system safety net.JEL Classification: G15, G21, G28.

Exploring the Principles and Laws of Financial Crisis: from the Subprime Mortgage Crisis to New Crown Epidemic

“…Future research ought to focus on short-term financial techniques that assist in reducing the impact of a recession. Previous studies have shown the importance of credit and risk management strategies that contribute to economic growth [6]. However, globalization has introduced new elements emanating from pandemic and subprime mortgages that require intensive measures.…”

Excerpts on New Hungarian State Finances From Legal, Economic and International Aspect

“…The crisis management carried out by the increasingly active central bank played a pivotal role in this process. 25 When Hungary was hit by the 2008 crisis, 26 it was vulnerable and defenceless. One reason for this, among others, was that the Constitution in force before 2011 did not contain any chapter on public finances; in other words, there was no constitutional rule, nor a guarantee enforcing compliance, for the limitation of excessive sovereign indebtedness.…”