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Financial Networks and Banking Policy

In: Contemporary Economic Issues


  • Patrick Honohan

    (Economic and Social Research Institute)

  • Dimitri Vittas

    (World Bank)


The interdependence of banks and governments, the inexorable sequence of banking booms and busts, and the prevalence of regulatory controls all have a centuries-long history. Developing and transition economies are confronted with the need for liberalization at a time when deregulation in the market economies has presaged costly bank failures. At the same time, although there is little reason to believe that the unregulated financial system is always for the best, the growing complexity of the world financial system begins to militate against successful policy activism.

Suggested Citation

  • Patrick Honohan & Dimitri Vittas, 1998. "Financial Networks and Banking Policy," International Economic Association Series, in: Holger C. Wolf (ed.), Contemporary Economic Issues, chapter 5, pages 97-117, Palgrave Macmillan.
  • Handle: RePEc:pal:intecp:978-1-349-26072-0_5
    DOI: 10.1007/978-1-349-26072-0_5

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