Government, Taxes and Banking Crises Articles uri icon

publication date

  • October 2011

start page

  • 2761

end page

  • 2770


  • 10


  • 35

International Standard Serial Number (ISSN)

  • 0378-4266

Electronic International Standard Serial Number (EISSN)

  • 1872-6372


  • This paper analyzes the effectiveness of different government policies to prevent the emergence of bank ing crises. In particular, we study the impact on welfare of using taxpayers money to recapitalize banks,
    government injection of money into the banking system through credit
    lines, the creation of a buffer and taxes on financial transactions (the
    Tobin tax). We illustrate the trade off between these policies and
    derive policy implications.