Crash-Free Sequencing Strategies for Financial Development and Liberalization

21 Pages Posted: 29 Dec 1998

See all articles by Jorge A. Chan-Lau

Jorge A. Chan-Lau

International Monetary Fund (IMF) - International Capital Markets Department

Zhaohui Chen

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: September 1998

Abstract

In the context of a stylized model of financial intermediation, this paper characterizes the circumstances along the paths of financial development, financial liberalization and economic growth that can trigger a financial crisis. It shows how to avoid financial crises through the proper sequencing of various financial development and liberalization measures. Usually, financial development should accompany, and even take priority over, financial liberalization. This is especially true in the case of fast growing economies.

JEL Classification: E44, F3, G15

Suggested Citation

Chan-Lau, Jorge Antonio and Chen, Zhaohui, Crash-Free Sequencing Strategies for Financial Development and Liberalization (September 1998). Available at SSRN: https://ssrn.com/abstract=141613 or http://dx.doi.org/10.2139/ssrn.141613

Jorge Antonio Chan-Lau (Contact Author)

International Monetary Fund (IMF) - International Capital Markets Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Zhaohui Chen

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6480 (Phone)
202-623-4740 (Fax)

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