• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Measuring financial liberalization
      • Financial liberalization and growth
      • Financial liberalization and crises
      • Growth and crises
      • A unified approach
      • Conceptual framework
      • Economic policy
    • See Also
    • Bibliography
    • How to cite this article

financial liberalization

Romain Rancière and Aaron Tornell and Frank Westermann
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Financial liberalization has led to financial deepening and higher growth in several countries. However, it has also led to a greater incidence of financial crises. Here, we review the empirical evidence on these dual effects of financial liberalization across different groups of countries. We then present a conceptual framework that explains why there is a trade-off between growth and incidence of crisis, and helps account for the cross-country difference in the effects of financial liberalization.
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How to cite this article

Rancière, Romain, Aaron Tornell and Frank Westermann. "financial liberalization." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 17 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_F000314> doi:10.1057/9780230226203.0569

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