This volume summarizes the key lessons of financial history for emerging markets and developing economies today, including the rise and role of central banks, debates on how to make banking secure and sound, the relative efficiency of universal banking compared to the Anglo-American commercial banking model, and the role of savings banks, non-banks and securities markets in development. Two lessons that should be kept in mind in reforming financial systems are the importance of incentives and diversification. Robust financial systems require incentive systems that reward prudent risk-taking and encourage sound portfolio diversification. In addition, reputation has proved to be important: central bankers must demonstrate anew why they have earned a reputation for non-inflationary policies, and private intermediaries must similarly demonstrate again why they have earned a reputation for sound, as opposed to Ponzi, finance. Attempts to reform financial systems without due allowance for th
The recent financial crisis was an accident, a "perfect storm" fueled by anunforeseeable confluence of events that unfortunately combined to bring down the global financialsystems. And policy makers?
The recent financial crisis was an accident, a "perfect storm" fueled by anunforeseeable confluence of events that unfortunately combined to bring down the global financialsystems. Or at least this is
