为了防止金融危机，第一个要求是在国内维持强大的金融体系。有必要对外汇储备的脆弱性水平进行有效控制。重要的是，金融体系应该具有高度说服力。我国应该有有效的公司治理，并有适当的银行监管和各种合同执行的可靠手段。预防金融危机所必需的第二个因素包括选择适当的汇率制度。这可以通过在固定汇率的调整，通过有一个完全独立的货币政策。第三，健全和稳定的宏观经济环境要求货币政策和财政政策等不同政策的漏洞得以最小化。这也包括完全避免财政赤字可以超越可持续的国内融资能力的国家（Brunnermeier & Markus，2012）。国家的赤字水平取决于国家的储蓄和资本市场的质量。第四，应减少与流动性有关的漏洞或滚动风险和资产负债表风险。外汇储备应以平衡和有意义的方式进行比较，并以此作为对国家储备的重要要求。此外，应避免基于政策的偏向短期资本。
In order to prevent the financial crises, the very first requirement is the maintenance of the strong financial system at the domestic level. It is necessary to have effective control on the levels of the vulnerability measures with respect to the foreign reserves. It is important that there should the financial system should be highly persuasive. There should be effective corporate governance in the nation along with the proper supervision of the banks and the credible means of the enforcement of different kinds of contracts. The second element which is necessary for the prevention of the financial crises includes the choice of the proper regimes of the exchange rates. This can be done by the adjustment in the fixed exchange rates, by having a completely independent monetary policy. Thirdly, there is a requirement of the sound and a stable macroeconomic environment where the vulnerabilities in the different policies such as the monetary policy and the fiscal policy can be minimized. This also includes a complete avoidance of the fiscal deficit which can be beyond the sustainable domestic financing capability of the country (Brunnermeier & Markus, 2012). The deficit level of the nation should depend on the savings of the country and also on the qualities of the capital markets. Fourth, there should be reduction in the vulnerabilities related to the liquidity or roll over risk and the balance sheet risks. The foreign reserves should be compared in such a way that they are balanced and meaningful and can act as an important claim against the reserve of the nation. Also, there should be avoidance of the policy based biasing towards the short term capital.
The present world is facing continuous ups and downs in terms of financial issues. There are varied financial crises among the nations. Thus, it is necessary that effective measures should be taken for the prevention of the financial crises. In this research paper, the causes of the international financial crises has been studied and the theories related to the financial crises has also been researched upon. On the basis of the same, a number of solutions for the prevention of the financial crises has been suggested.