institutions. One policy implication of our view is that the need for various forms of rescues of financial firms in times of … crises would be reduced if appropriate institutions could be put in place Lacking appropriate institutions to avoid contagion … order to illustrate the problems policy makers face in a financial crisis without appropriate institutions. Current European …

institutions precede crises and, interestingly, positive reforms occur thereafter. Strong institutions shorten the duration of … interaction effect suggests they can be offset by appropriate institutions. …