Lessons from World Bank Research on Financial Crises
The benefits of financial development and globalization have come with continuing fragility in financial sectors. Periodic crises have had real but heterogeneous welfare impacts and not just for poor people; indeed, some of the conditions that fost...
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| Format: | Policy Research Working Paper |
| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/12/10107901/lessons-world-bank-research-financial-crises http://hdl.handle.net/10986/6342 |
| Summary: | The benefits of financial development
and globalization have come with continuing fragility in
financial sectors. Periodic crises have had real but
heterogeneous welfare impacts and not just for poor people;
indeed, some of the conditions that foster deep and
persistent poverty, such as lack of connectivity to markets,
have provided a degree of protection for the poor. Past
crises have also had longer-term impacts for some of those
affected, most notably through the nutrition and schooling
of children in poor families. As in other areas of policy,
effective responses to a crisis require sound data and must
take account of incentives and behavior. An important lesson
from past experience is that the short-term responses to a
crisis-macroeconomic stabilization, trade policies,
financial sector policies and social protection-cannot
ignore longer-term implications for both economic
development and vulnerability to future crises. |
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