Growing Up to Financial Stability
21 Pages Posted: 29 Nov 2010
Date Written: 2007
This lecture revisits the evidence on the incidence and severity of different varieties of financial crises within the context of globalization then (pre-1914) and now (1980 to the present). I then discuss the determinants of emerging market crises from the perspective of the recent balance sheet approach. This approach puts at center stage the importance of financial development. I then peel the onion back further and consider the "deep" institutional determinants of financial development and their relationship to financial stability. I conclude by conjecturing about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability.
Keywords: financial crises, globalization, financial development, institutions
JEL Classification: N1, G2, F4, O1
Suggested Citation: Suggested Citation