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"Claessens, Klingebiel and Laeven analyze the role of insinuations in resolving systematic banking crises for a broad sample of countries. Banking crises are fiscally costly, especially when policies like substantial liquidity support, explicit government guarantees on financial insinuation's liabilities, and forbearance from prudential regulations are used. Higher fiscal outlays do not , however, accelerate the recovery from a crisis. Better institutions-less corruption, improved law and order, legal system, and bureaucracy-do. The authors find these results to be relatively robust to estimation techniques, in clung controlling for the effects of a poor institutional environment on the likelihood of financial crisis and the size of fiscal costs. Their results suggest that countries should use strict policies to resolve a crisis and use the crisis as an opportunity to implement me

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