Features of crisis management in developed countries

Abstract

The experience of developed countries in conducting anti-crisis policy measures is analyzed. The author found, that the priority of crisis management in most developed countries is the financial sector, the salvation of which can be manifested in exchange rate stabilization, reserve requirements as a financial policy tool, regulation of banking, insurance and securities markets, etc. Іn the Scandinavian countries, the main tools of crisis management usually are indirect methods of regulation through monetary policy measures. The priority of anti-crisis policy in the Scandinavian countries is education, health care, pensions, labor market, etc. Germany and Switzerland conduct special trainings to test resilience and ability to react to crisis. Experts are participants from all economic sectors and politics who estimate the governments’ ability to respond to crises. “The quantitative easing policy” in the USA, which aimed to purchase by central banks additional financial assets to “infuse” funds into the national economy is analyzed by author. “Quantitative easing” is perhaps the only monetary policy instrument that has helped advanced economies such as the United States, Japan, and the EU partially overcome the liquidity trap following the 2008 financial crisis.
In general, most developed countries use monetary policy tools as anti-crisis measures in order to accumulate funds for the stabilization fund. Central banks in industrialized countries use securities transactions in the open market to replenish the stabilization funds. In addition, the priority measures are to provide financial support and to increase product demand of those enterprises that have suffered the most during the crisis.