Financial Liberalization and Stability in Developing Countries
32 Pages Posted: 15 Feb 2006
Date Written: March 17, 1987
This paper discusses the recent experience with financial innovation and liberalization in developing countries. It is argued that successful adaptations to innovation and liberalization in industrial countries provide poor guidelines for a successful transition from the financially repressed systems often encountered in many developing countries. The analysis suggests that financial institutions in a developing country must be structured to operate in an inherently more difficult environment. Finally, the paper outlines the types of regulatory and supervisory policies that can help achieve such a structure.
JEL Classification: 1211, 3140, 3110
Suggested Citation: Suggested Citation