The basic worldwide financial safety net architecture provides for a system of similar institutions: a lender of last resort, deposit insurance, and prudential regulation. In countries whose banking systems suffer seriously from negative capital positions and overbanking, such as in some Latin...

This paper complements previous studies by arguing that the low private savings ratio in Latin America can be associated with the limited confidence of households and businesses in domestic financial institutions. Previous studies have established a relationship between private savings and...

This paper analyzes the consequences of alternative financial structures for financial efficiency and stability. The focus is on the organizational structure of banks. Alternative bank structures range from "narrow banks" to broad "universal banks". Each banking structure is assessed in its...

This study assesses macroeconomic volatility in Costa Rica, based largely on politically weak governments' inability or unwillingness to effect key reforms. Notable problems include volatility-prone fiscal and monetary policy, structurally weak public finances due to large domestic debts and...

This paper studies the proposition that capital inflows tend to take the form of FDI -i.e., the share of FDI in total liabilities tends to be higher- in countries that are safer, more promising and with better institutions and policies. It finds that this view is patently wrong since it stands...