The architecture of the current international financial system

Vol. 29 No. 3 (2009)

Jul-Sep / 2009
Published July 1, 2009
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Farhi, Maryse, and Marcos Antonio Macedo Cintra. 2009. “The Architecture of the Current International Financial System”. Brazilian Journal of Political Economy 29 (3):274-94.

The architecture of the current international financial system

Maryse Farhi
Professora do Instituto de Economia da Universidade Estadual de Campinas (Unicamp) e pesquisadora do Centro de Conjuntura e Política Econômica (Cecon/IE/Unicamp)
Marcos Antonio Macedo Cintra
Professor do IE/Unicamp e pesquisador do Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)
Brazilian Journal of Political Economy, Vol. 29 No. 3 (2009), Jul-Sep / 2009, Pages 274-294


This paper discusses some features of financial institutions and instruments which originated the financial crisis triggered by increasing default rate, household real estate and financial asset depreciation combined with U.S. subprime mortgages. The first part presents major crisis events in a chronological order. The second part describes the interconnection of the institutions and markets which engendered a global shadow financial system. The third part focuses on an overview of measures taken by government authorities and large banks to bring about possible solutions for the global financial crisis.

JEL Classification: G01; G21; G24.

Keywords: financial crisis banks mortgages investment banks ratings agencies