We study how financial transactions may respond to exogenous variation in trade opportunities not only directly, but also through policy channels. In more open economies, governments may find it more difficult to fund and enforce public policies that substitute private financial transactions,...

"Analyzes the deepening of and structural changes in Korea's financial system since the early 1980s and presents the empirical results of the effects of financial development on economic growth, stability, and the distribution of income. Finds that, contrary to conventional wisdom, financial...