We have ample experience of how things can go wrong, for example, the Asian crisis in the late 1990's, and the series of crises in Latin America around the turn of the millennium. And, also Finland has first hand experience from a severe banking crisis that took place less than 20 years ago. There are many lessons to be drawn from these crises.
Here I want to highlight just two. 2  BIS Review 98/2007  First is the importance of sound macroeconomic policies. Prudent fiscal policy and stability oriented monetary policy make an economy more resilient to shocks. In some cases, more flexible exchange rates could help prevent unsustainable developments.