Stephany Griffith-Jones and José Antonio Ocampo
Initiative for Policy Dialogue, 2011
The problems of boom-bust patterns of financial markets have a long history (Kindleberger,1982). Its frequency has been high since the 1970s, as a result of both financial liberalization and inadequate prudential regulation. Indeed, the world financial crisis provided further evidence that unless properly regulated, financial markets are prone to harmful boom-bust patterns, often leading to costly crises (Soros, 2008). In contrast, when financial systems have been simpler and better regulated, as in the quarter of a century that followed the Second World War, crises were infrequent.
View the paper here: Global Governance for Financial Stability and Development