It has increased its lending, with financing now offered at extended maturities of up to one year 5 , and has even temporarily expanded the list of collateral accepted in its credit operations. 6 As I have said, in a crisis central banks face a trade-off that may prevent them from engaging in bolder measures, notably as regards the need to contain moral hazard.
Hence mistakes in monetary policy, omissions in supervising financial institutions and insufficient domestic competitive structures in some cases made the crises possible in the first place and were largely responsible for the scale of the crises. A number of Asian countries tolerated the emergence of a bubble economy and evidently did not correctly assess the associated dangers.