World Bank2012-05-242012-05-242008-11https://hdl.handle.net/10986/6342The 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.CC BY 3.0 IGOACCESS TO CREDITASSET PORTFOLIOASSET VALUESASYMMETRIC INFORMATIONBAILOUTSBALANCE OF PAYMENTSBALANCE SHEETSBANK CREDITBANK CREDITORSBANK POLICYBANK REGULATIONBANKING CRISESBANKING CRISISBANKING REGULATIONBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKSBORROWINGCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETSCASH FLOWSCASH TRANSFERCASH TRANSFERSCENTRAL BANKCOLLATERALCOMMODITIESCONTINGENCYCOST RECOVERYCOUNTRY RISKCREDIBILITYCREDIT GROWTHCREDIT INCREASESCREDIT MARKETCREDIT PROVISIONCREDIT RISKCRISIS MANAGEMENTCURRENCY BOARDCURRENCY DEVALUATIONCURRENT ACCOUNTCURRENT ACCOUNT DEFICITSCURRENT INCOMESDEBTDEBT BURDENDEBT BURDENSDEBT LEVELSDEBT SERVICINGDEFAULT RISKSDEPOSITDEPOSIT INSURANCEDEPOSITORSDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDIVERSIFICATIONDOMESTIC CURRENCYDOMESTIC MARKETSDROUGHTEARNINGSECONOMIC COSTECONOMIC DEVELOPMENTECONOMIC SHOCKSEDUCATION PROGRAMEMERGING ECONOMIESEMERGING MARKETEMERGING MARKETSEQUITY MARKETSEXCHANGE RATESEXPENDITURESEXTERNAL DEBTEXTERNAL FINANCEEXTERNAL SHOCKEXTERNAL SHOCKSEXTRA CASHFEDERAL RESERVEFEDERAL RESERVE BANKFILING FOR BANKRUPTCYFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL FRAGILITYFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL POLICIESFINANCIAL POSITIONFINANCIAL PROBLEMSFINANCIAL PRODUCTSFINANCIAL REGULATIONFINANCIAL RISKFINANCIAL RUINFINANCIAL SECTORFINANCIAL SECTORSFINANCIAL SHOCKFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFISCAL POLICYFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN INVESTORSFUTURE INCOMESGLOBAL MARKETSGLOBAL TRADEGLOBALIZATIONGOVERNMENT INTERVENTIONHEALTH INSURANCEHEALTH SPENDINGHOUSEHOLD INCOMEHOUSEHOLD INCOMESHUMAN CAPITALHUMAN DEVELOPMENTHUMAN RESOURCESINCOME GROUPSINCOME SHOCKSINFLATIONINFORMED INVESTORSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE INVESTMENTINSURANCEINTEREST BURDENINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL ECONOMICSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INTEGRATIONINTERNATIONAL INVESTORSINTERNATIONAL TRADEINVESTOR CONFIDENCELABOR FORCELABOR HOURSLABOR MARKETLABOR MARKETSLANDHOLDERSLEGAL FRAMEWORKLENDERLENDER-OF-LAST-RESORTLEVYLIFETIMELIFETIME EARNINGSLIQUIDITYLONG-TERM GOALSMACROECONOMIC CRISESMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILIZATIONMACROECONOMIC VOLATILITYMARKET DISCIPLINEMARKET ECONOMYMARKET FAILURESMARKET INTEREST RATESMARKET LIQUIDITYMARKET PARTICIPANTSMARKET REFORMMINIMUM WAGEMONETARY POLICIESMONETARY POLICYMORAL HAZARDMORTGAGESMUTUAL FUNDMUTUAL FUND STRATEGIESNATURAL DISASTERSNET WORTHOPEN ECONOMIESOPPORTUNITY COSTOUTPUT LOSSPOLICY RESPONSEPOLICY RESPONSESPOLITICAL ECONOMYPORTFOLIOPORTFOLIOSPOVERTY RATEPRIVATE CAPITALPROBABILITYPRODUCTIVITYPRUDENTIAL REGULATIONPUBLIC DEBTPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC SPENDINGRAPID POPULATION GROWTHREAL COSTSRECESSIONRECESSIONSRELIANCE ON SHORT-TERM DEBTREMITTANCESRESERVESRESPONSIBILITIESRETURNRETURNSRISK SHARINGRURAL CREDITSAFETY NETSAFETY NETSSAVINGSSELF-EMPLOYMENTSHAREHOLDERSSKILLED WORKERSSOCIAL PROTECTIONSOVEREIGN RATINGSSTOCK MARKETSTOCK RETURNSSTOCKSSUBORDINATED DEBTTAXTRADE CREDITTRADE LIBERALIZATIONTRADINGTRADING SYSTEMTRANSITION ECONOMIESTRANSPARENCYUNEMPLOYEDUNEMPLOYMENTURBAN POPULATIONSWAGEWAGESWEB SITEWORLD MARKETWORLD MARKET INTEGRATIONWORLD TRADEYOUNG CHILDRENWorld Bank10.1596/1813-9450-4779