Publication: Lessons from World Bank Research on Financial Crises
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2008-11
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2012-05-24
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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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“World Bank. 2008. Lessons from World Bank Research on Financial Crises. Policy Research Working Paper; No. 4779. © World Bank. http://hdl.handle.net/10986/6342 License: CC BY 3.0 IGO.”
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