That is apparent from the recent episodes: Japan’s crisis, the Nordic crisis, the East Asian crisis, the LTCM crisis, the Russian crisis, and the current global financial crisis. In addition, financial crises have increased their magnitude. Second, financial crises have occurred on a more global scale than before.
Japan’s financial crisis was an isolated event for the global financial system, albeit a serious event for Japan. However, the subsequent crises strengthened their global nature. The crisis after the failure of Lehman Brothers was truly a global financial crisis. Third, financial crises have a bit different nature, compared with the past. Financial crises always surface in the form of a liquidity shortage.