Trade Finance during the 2008–9 Trade Collapse : Key Takeaways
Trade finance matters for trade, and when financial markets and world trade collapsed three years ago, a shortage in trade finance was hailed as a possible culprit. Because of the potential for global repercussions, world leaders called on the inte...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/09/15165991/trade-finance-during-2008-9-trade-collapse-key-takeaways http://hdl.handle.net/10986/10077 |
| Summary: | Trade finance matters for trade, and
when financial markets and world trade collapsed three years
ago, a shortage in trade finance was hailed as a possible
culprit. Because of the potential for global repercussions,
world leaders called on the international community to act
swiftly to avoid a depression. Governments and international
institutions intervened to mitigate the impacts of the
crisis. Then the economy bounced back, and trade picked up.
But what did we learn from the crisis? In retrospect, what
role did trade finance actually play? Did the freeze in the
financial markets cause the unprecedented drop in global
trade in 2008-9? This note presents evidence on the role of
trade finance during 2008-9 and highlights a few takeaways
on the data and knowledge gap of trade finance and
government interventions during financial crises. |
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