FINANCIAL CRISES: PREVENTION, CORRECTION, AND MONETARY POLICY.

The article discusses the financial crisis in the U.S. and elsewhere in the early 21st century. The author argues that central banks can provide price stability that, in addition to the author's call for wise economic policies and sensible governmental regulations, will prevent future economic crises. The author discusses his views on the macroeconomic aspects of price collapses, growth stagnation, and recession. The article also examines capitalization and liquidity standards as well as the so-called the "Greenspan put," advocated by former U.S. Federal Reserve chairman Alan Greenspan.