Drawing on theories from the module as well as on evidence from the articles referenced below, outline possible causes of financial crises and how regulation of the financial sector can help prevent them.

The Economist (2014) 'The slumps that shaped modern finance', The Economist, April 12.

Tett, G. (2018) 'Have we learnt the lessons of the financial crisis?', Financial Times, August 31.

Reinhart, C. (2021) 'The Quiet Financial Crisis', World Bank Blog, January 7.

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Financial crises can have devastating effects on economies and societies They can lead to recessions unemployment and significant disruptions in the financial system There are several possible causes ... View the full answer