Policies that help to prevent crises (a)  Maintaining low inflation  When listing policies that help to prevent financial crises, the first one we come to is the maintenance of low inflation.
It stands to reason that a background of low inflation is less likely to underpin rapidly rising asset values, and the speculative excesses that go with them, than a background of high inflation. But we should not take too much comfort from this, as events in Japan remind us.