The world still lives in the shadow of the global financial crisis that began in the United States in 2008. The U.S. experience shone a spotlight on the dangers of financial systems that have grown exponentially and beyond traditional banks. It triggered a rethinking of the extent and speed of the expansion of a country’s financial sector, and raised questions about which policies promote a safe financial system.
In our new study, we emphasize that the most commonly used indicator—bank credit—is not sufficient to measure the size and scope of a country’s financial development. We create a comprehensive index for over 170 countries to answer several policy questions from the perspective of emerging markets.
Filed under: Advanced Economies, Economic Crisis, Economic research, Emerging Markets, Europe, Finance, growth | Tagged: capital markets, Ecuador, emerging market, financial deepening, financial development, financial markets, financial stability, Gambia, growth, Ireland, Japan, liquidity, Morocco, Poland, U.S., United Kingdom, United States | Leave a comment »