The recent global ?nancial crisis has made ?nancial liberalization a
topic of great academic and practical interest. This book makes new
contributions to the topic by combining fact-?nding, empirical analysis,
and theory to examine the relationship between ?nancial liberalization
and economic growth. Among its contributions, the book provides detailed
country assessments on the effects of ?nancial liberalization, including
its striking impact on the banking sector. Although an important goal of
?nancial deregulation has been to help ?nancial institutions better
perform their role in intermediating resources, the book models how
deregulation may fail to achieve that goal in countries with
underdeveloped ?nancial markets and institutions. For that purpose, the
book draws on actual experience in Kenya, Malawi, Botswana, and
Thailand. This book should constitute important reading for students of
?nancial economics, researchers and general academics, ?nancial
practitioners, policymakers, and teachers of economics. North Carolina,
USA Steven L. Schwarcz December 2008 Stanley A. Star Professor of Law &
Business, Duke University Founding Director, Duke Global Capital Markets
Center Durham vii Abstract and Preface The latest global ?nancial and
economic crisis of 2008 shows the need to - examine the desirability of
?nancial liberalization and the basis for the view that ?nancial
deregulation by itself cannot be considered as a substitute for better
economic management. The literature on ?nancial liberalization has
identi?ed various mechanisms through which removing controls on interest
rates may impact economic growth.
