Path Dependence of Financial Development and Financial Liberalization (Contemporary Economics)

Author: Peng Xingyun
Publisher:
Publish Date: 2002-11-01
Features: The financial development issues in developing countries have always been a hot topic in the field of finance. The author of this book breaks away from traditional thinking and explores the path dependence of financial development from a micro-mechanism perspective. Based on a certain logical order, the book provides a relatively detailed study of the leading development of capital markets during the process of financial liberalization; the liberalization of banking and financial development; the liberalization of interest rates and financial development; financial liberalization in an open economy; the informal finance and financial liberalization in the process of financial development; and the stabilizing policies such as fiscal control, monetary control, prudent regulation, and institutional constraints during the process of financial liberalization. The analysis in this book focuses on establishing a solid microfoundation for financial liberalization to avoid potential chaos in the financial order, the collapse of the credit system, and financial crises under the guidance of purely macroeconomic policies. It provides partial theoretical support for China's financial reform strategy.