Thus, there are very good reasons for a country to do what it can to avoid financial instability. History shows that it does not happen very often, but when it does, its effects can be devastating.
Table 1: Cost of Recapitalisation Country  Period  Cost as per cent of GDP  Spain United States (Savings & Loans)  1977-1985 1984-1991  16.8 3.2  Scandinavia Finland Norway Sweden  1991-1993 1987-1989 1991  8.0 4.0 6.4  Latin America Chile Mexico  1981-1983 1995  41.2 13.5  Asia Indonesia Korea Malaysia Philippines Thailand  1997-1998 1997-1998 1997-1998 1981-1987 1997-1998  34.5 24.5 19.5 3.0 34.5  Sources:  Caprio and Klingebiel, World Bank, July 1996.