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art I: The benefits of free financial markets -- Does finance benefit only the rich? -- Shylock transformed -- The financial revolution and individual economic freedom -- The dark side of finance -- The bottom line on financial development -- Part II: When do financial markets emerge? -- The...
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Drawing broadly on the literature on the political economy of the financial crisis, the paper looks at deregulation as … opportunistic profit (rent) seeking was more the cause rather than the effect of moral hazard and regulation failure. Deregulation … deregulation promised in turn incentivized financial firms to invest in tilting the political process to shape government policy …
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This article explores the effect of delays in updating prudential regulation on countries' likelihood of experiencing banking crises, and it disentangles the impact of different aspects of regulation on crisis onset. I argue that delays in revising banks' prudential regulation allow banks to...
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Information costs and regulatory barriers are the main distinguishing features of international financial markets as compared to national financial markets. This paper presents a simple model of the impact of these factors on banks' cross-border activities and provides empirical evidence. Our...
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