Series: IMF Working Papers
Author(s): Eduardo Levy Yeyati
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 1999
Keywords: Banking Crises, Capital Account Liberalization, Deposit Insurance, Moral Hazard, international capital, deposit rates, international capital markets
The removal of government guarantees in borrowing countries does not eliminate the moral hazard problem posed by the existence of deposit guarantees in lender countries. The paper shows that, after restrictions on...