G0 - General

• Governance and Financial Fragility: Evidence from a Cross-Section of Countries

  Staff Working Paper 2003-34 Michael Francis

  The author explores the role of governance mechanisms as a means of reducing financial fragility. First, he develops a simple theoretical general-equilibrium model in which instability arises due to an agency problem resulting from a conflict of interest between the borrower and lender.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Financial markets JEL Code(s): G, G0