The Global Financial Crisis and Development Thinking
The global financial crisis has not only dealt a major blow to the global economy, but also shaken confidence in economic management in the developed world and the economic models that guide it. The crisis has revealed major market failures, especi...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100629111506 http://hdl.handle.net/10986/3838 |
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okr-10986-3838 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACTIVE MARKETS ADMINISTRATIVE CONTROL ADVANCED ECONOMIES ARBITRAGE ASSET PRICE ASYMMETRIC INFORMATION AVERAGE PRODUCTIVITY BAILOUT BAILOUTS BANK POLICY BANKING SYSTEM BANKRUPTCY BOND BOND RATING BORROWER CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNTS CAPITAL FLOWS CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CLIMATE CHANGE COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CORPORATE GOVERNANCE COST-BENEFIT CREDIT AVAILABILITY CREDIT LINE CRISIS COUNTRIES CURRENCY CURRENT PRICES DEBT DEBT CRISIS DEBT FINANCING DEBT LEVELS DEBTS DEFAULT RISK DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC MODELS ECONOMIC OUTLOOK ECONOMIC POLICIES ECONOMIC PROBLEMS ECONOMIC RESEARCH ECONOMIC THOUGHT EFFICIENT MARKET EMERGING ECONOMIES EMERGING MARKETS EQUITY FINANCING EXCESS RETURNS EXCHANGE RATE EXOGENOUS SHOCKS EXPORT GROWTH EXPORT VOLUMES EXPORTERS EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL SHOCKS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL POLICY FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEM FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FOREIGN BANKS FOREIGN CAPITAL FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FULL EMPLOYMENT GDP GLOBAL CAPITAL GLOBAL DEVELOPMENT FINANCE GLOBAL ECONOMY GLOBAL MARKETS GLOBAL RECESSION GLOBAL TRADE GLOBALIZATION GOVERNMENT ACTION GOVERNMENT REGULATION HEALTH SERVICES HEDGE FUNDS HOME OWNERSHIP HOST COUNTRIES HOUSEHOLD SAVING HOUSING HOUSING FINANCE HOUSING PRICES HUMAN DEVELOPMENT IMPERFECT INFORMATION IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDUSTRIALIZATION INFLATION INFLATION RATES INFORMATION ASYMMETRIES INFORMATION TECHNOLOGY INFORMED INVESTORS INSTITUTIONAL ENVIRONMENT INSURANCE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL PORTFOLIO INTERNATIONAL TRADE INVESTING INVESTMENT BANKS INVESTMENT CLIMATE KEYNESIAN ECONOMICS LEVY LIQUIDITY LOAN LOAN MARKETS LOWER PRICE MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC RISKS MACROECONOMIC STABILITY MACROECONOMIC VOLATILITY MACROECONOMICS MARKET DEVELOPMENT MARKET ECONOMY MARKET EFFICIENCY MARKET FAILURES MARKET FOR SECURITIES MARKET MECHANISM MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET SIZE MATURE MARKETS MONETARY ECONOMICS MONETARY FUND MONETARY POLICY MORTGAGE MORTGAGE DEBTS MORTGAGE-BACKED SECURITIES NATIONAL SAVING NEGATIVE EXTERNALITIES NEOCLASSICAL MODELS NET EXPORTS OLIGARCHY PEER PRESSURES PENSION POLICY ADVICE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO CAPITAL PORTFOLIO INVESTMENT PORTFOLIOS PRICE SERIES PRODUCT MARKETS PROFITABILITY PROPERTY RIGHTS PRUDENTIAL REGULATION PUBLIC AGENCIES PUBLIC POLICY PUBLIC SERVICES PUBLIC SPENDING RATING AGENCIES REAL EXCHANGE RATE REGULATOR REGULATORS REGULATORY AGENCIES REGULATORY AGENCY REGULATORY GAPS REGULATORY INFRASTRUCTURE REGULATORY STRUCTURE REGULATORY STRUCTURES RESERVES RESOURCE ALLOCATION RETIREMENT RETURN RETURNS RISKY ASSETS SAVINGS SAVINGS BEHAVIOR SHORT-TERM CAPITAL SHORT-TERM LIQUIDITY SOLVENCY STATE FAILURES STATE INTERVENTION SUPPLY SHOCKS SWAPS SYSTEMIC RISK TAX TRADING UNCERTAINTIES UNDERLYING PROBLEMS UNEMPLOYMENT VALUATION VALUATIONS VALUE AT RISK MODELS WEALTH WEALTH EFFECTS WORLD ECONOMY |
| spellingShingle |
ACTIVE MARKETS ADMINISTRATIVE CONTROL ADVANCED ECONOMIES ARBITRAGE ASSET PRICE ASYMMETRIC INFORMATION AVERAGE PRODUCTIVITY BAILOUT BAILOUTS BANK POLICY BANKING SYSTEM BANKRUPTCY BOND BOND RATING BORROWER CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNTS CAPITAL FLOWS CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CLIMATE CHANGE COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CORPORATE GOVERNANCE COST-BENEFIT CREDIT AVAILABILITY CREDIT LINE CRISIS COUNTRIES CURRENCY CURRENT PRICES DEBT DEBT CRISIS DEBT FINANCING DEBT LEVELS DEBTS DEFAULT RISK DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC MODELS ECONOMIC OUTLOOK ECONOMIC POLICIES ECONOMIC PROBLEMS ECONOMIC RESEARCH ECONOMIC THOUGHT EFFICIENT MARKET EMERGING ECONOMIES EMERGING MARKETS EQUITY FINANCING EXCESS RETURNS EXCHANGE RATE EXOGENOUS SHOCKS EXPORT GROWTH EXPORT VOLUMES EXPORTERS EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL SHOCKS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL POLICY FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEM FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FOREIGN BANKS FOREIGN CAPITAL FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FULL EMPLOYMENT GDP GLOBAL CAPITAL GLOBAL DEVELOPMENT FINANCE GLOBAL ECONOMY GLOBAL MARKETS GLOBAL RECESSION GLOBAL TRADE GLOBALIZATION GOVERNMENT ACTION GOVERNMENT REGULATION HEALTH SERVICES HEDGE FUNDS HOME OWNERSHIP HOST COUNTRIES HOUSEHOLD SAVING HOUSING HOUSING FINANCE HOUSING PRICES HUMAN DEVELOPMENT IMPERFECT INFORMATION IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDUSTRIALIZATION INFLATION INFLATION RATES INFORMATION ASYMMETRIES INFORMATION TECHNOLOGY INFORMED INVESTORS INSTITUTIONAL ENVIRONMENT INSURANCE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL PORTFOLIO INTERNATIONAL TRADE INVESTING INVESTMENT BANKS INVESTMENT CLIMATE KEYNESIAN ECONOMICS LEVY LIQUIDITY LOAN LOAN MARKETS LOWER PRICE MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC RISKS MACROECONOMIC STABILITY MACROECONOMIC VOLATILITY MACROECONOMICS MARKET DEVELOPMENT MARKET ECONOMY MARKET EFFICIENCY MARKET FAILURES MARKET FOR SECURITIES MARKET MECHANISM MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET SIZE MATURE MARKETS MONETARY ECONOMICS MONETARY FUND MONETARY POLICY MORTGAGE MORTGAGE DEBTS MORTGAGE-BACKED SECURITIES NATIONAL SAVING NEGATIVE EXTERNALITIES NEOCLASSICAL MODELS NET EXPORTS OLIGARCHY PEER PRESSURES PENSION POLICY ADVICE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO CAPITAL PORTFOLIO INVESTMENT PORTFOLIOS PRICE SERIES PRODUCT MARKETS PROFITABILITY PROPERTY RIGHTS PRUDENTIAL REGULATION PUBLIC AGENCIES PUBLIC POLICY PUBLIC SERVICES PUBLIC SPENDING RATING AGENCIES REAL EXCHANGE RATE REGULATOR REGULATORS REGULATORY AGENCIES REGULATORY AGENCY REGULATORY GAPS REGULATORY INFRASTRUCTURE REGULATORY STRUCTURE REGULATORY STRUCTURES RESERVES RESOURCE ALLOCATION RETIREMENT RETURN RETURNS RISKY ASSETS SAVINGS SAVINGS BEHAVIOR SHORT-TERM CAPITAL SHORT-TERM LIQUIDITY SOLVENCY STATE FAILURES STATE INTERVENTION SUPPLY SHOCKS SWAPS SYSTEMIC RISK TAX TRADING UNCERTAINTIES UNDERLYING PROBLEMS UNEMPLOYMENT VALUATION VALUATIONS VALUE AT RISK MODELS WEALTH WEALTH EFFECTS WORLD ECONOMY Rogers, F. Halsey The Global Financial Crisis and Development Thinking |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5353 |
| description |
The global financial crisis has not only
dealt a major blow to the global economy, but also shaken
confidence in economic management in the developed world and
the economic models that guide it. The crisis has revealed
major market failures, especially in the housing bubble and
its transmission to the financial system, but also glaring
state failures that propagated and exacerbated the crisis.
Will the events of the past two years lead to major shifts
in thinking about development economics, and should they?
This paper assesses that question for several key domains of
development thinking, including the market-state balance,
macroeconomic management, globalization, development
financing, and public spending. On the one hand, changed
global circumstances and new awareness of vulnerability
should lead to some policy changes, as developing countries
take steps to reduce and buffer risks, including risks
generated in developed countries. At the same time, the
crisis should largely reinforce the Post-Washington
Consensus on development that has emerged over the past
decade -- a world view that aims to achieve private
sector-driven growth but sees a facilitating role for the
state, promotes engaging with the global economy in ways
that advance development, and values pragmatism,
experimentation, and evidence-based policymaking over ideology. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Rogers, F. Halsey |
| author_facet |
Rogers, F. Halsey |
| author_sort |
Rogers, F. Halsey |
| title |
The Global Financial Crisis and Development Thinking |
| title_short |
The Global Financial Crisis and Development Thinking |
| title_full |
The Global Financial Crisis and Development Thinking |
| title_fullStr |
The Global Financial Crisis and Development Thinking |
| title_full_unstemmed |
The Global Financial Crisis and Development Thinking |
| title_sort |
global financial crisis and development thinking |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100629111506 http://hdl.handle.net/10986/3838 |
| _version_ |
1764388602644529152 |
| spelling |
okr-10986-38382021-04-23T14:02:13Z The Global Financial Crisis and Development Thinking Rogers, F. Halsey ACTIVE MARKETS ADMINISTRATIVE CONTROL ADVANCED ECONOMIES ARBITRAGE ASSET PRICE ASYMMETRIC INFORMATION AVERAGE PRODUCTIVITY BAILOUT BAILOUTS BANK POLICY BANKING SYSTEM BANKRUPTCY BOND BOND RATING BORROWER CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNTS CAPITAL FLOWS CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CLIMATE CHANGE COMMERCIAL BANKS COMPARATIVE ADVANTAGE CONSUMERS CORPORATE GOVERNANCE COST-BENEFIT CREDIT AVAILABILITY CREDIT LINE CRISIS COUNTRIES CURRENCY CURRENT PRICES DEBT DEBT CRISIS DEBT FINANCING DEBT LEVELS DEBTS DEFAULT RISK DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC MODELS ECONOMIC OUTLOOK ECONOMIC POLICIES ECONOMIC PROBLEMS ECONOMIC RESEARCH ECONOMIC THOUGHT EFFICIENT MARKET EMERGING ECONOMIES EMERGING MARKETS EQUITY FINANCING EXCESS RETURNS EXCHANGE RATE EXOGENOUS SHOCKS EXPORT GROWTH EXPORT VOLUMES EXPORTERS EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL SHOCKS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL POLICY FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEM FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FOREIGN BANKS FOREIGN CAPITAL FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FULL EMPLOYMENT GDP GLOBAL CAPITAL GLOBAL DEVELOPMENT FINANCE GLOBAL ECONOMY GLOBAL MARKETS GLOBAL RECESSION GLOBAL TRADE GLOBALIZATION GOVERNMENT ACTION GOVERNMENT REGULATION HEALTH SERVICES HEDGE FUNDS HOME OWNERSHIP HOST COUNTRIES HOUSEHOLD SAVING HOUSING HOUSING FINANCE HOUSING PRICES HUMAN DEVELOPMENT IMPERFECT INFORMATION IMPORTS INCOME INCOME GROWTH INCOME LEVELS INDUSTRIALIZATION INFLATION INFLATION RATES INFORMATION ASYMMETRIES INFORMATION TECHNOLOGY INFORMED INVESTORS INSTITUTIONAL ENVIRONMENT INSURANCE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL PORTFOLIO INTERNATIONAL TRADE INVESTING INVESTMENT BANKS INVESTMENT CLIMATE KEYNESIAN ECONOMICS LEVY LIQUIDITY LOAN LOAN MARKETS LOWER PRICE MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC RISKS MACROECONOMIC STABILITY MACROECONOMIC VOLATILITY MACROECONOMICS MARKET DEVELOPMENT MARKET ECONOMY MARKET EFFICIENCY MARKET FAILURES MARKET FOR SECURITIES MARKET MECHANISM MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET SIZE MATURE MARKETS MONETARY ECONOMICS MONETARY FUND MONETARY POLICY MORTGAGE MORTGAGE DEBTS MORTGAGE-BACKED SECURITIES NATIONAL SAVING NEGATIVE EXTERNALITIES NEOCLASSICAL MODELS NET EXPORTS OLIGARCHY PEER PRESSURES PENSION POLICY ADVICE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO CAPITAL PORTFOLIO INVESTMENT PORTFOLIOS PRICE SERIES PRODUCT MARKETS PROFITABILITY PROPERTY RIGHTS PRUDENTIAL REGULATION PUBLIC AGENCIES PUBLIC POLICY PUBLIC SERVICES PUBLIC SPENDING RATING AGENCIES REAL EXCHANGE RATE REGULATOR REGULATORS REGULATORY AGENCIES REGULATORY AGENCY REGULATORY GAPS REGULATORY INFRASTRUCTURE REGULATORY STRUCTURE REGULATORY STRUCTURES RESERVES RESOURCE ALLOCATION RETIREMENT RETURN RETURNS RISKY ASSETS SAVINGS SAVINGS BEHAVIOR SHORT-TERM CAPITAL SHORT-TERM LIQUIDITY SOLVENCY STATE FAILURES STATE INTERVENTION SUPPLY SHOCKS SWAPS SYSTEMIC RISK TAX TRADING UNCERTAINTIES UNDERLYING PROBLEMS UNEMPLOYMENT VALUATION VALUATIONS VALUE AT RISK MODELS WEALTH WEALTH EFFECTS WORLD ECONOMY The global financial crisis has not only dealt a major blow to the global economy, but also shaken confidence in economic management in the developed world and the economic models that guide it. The crisis has revealed major market failures, especially in the housing bubble and its transmission to the financial system, but also glaring state failures that propagated and exacerbated the crisis. Will the events of the past two years lead to major shifts in thinking about development economics, and should they? This paper assesses that question for several key domains of development thinking, including the market-state balance, macroeconomic management, globalization, development financing, and public spending. On the one hand, changed global circumstances and new awareness of vulnerability should lead to some policy changes, as developing countries take steps to reduce and buffer risks, including risks generated in developed countries. At the same time, the crisis should largely reinforce the Post-Washington Consensus on development that has emerged over the past decade -- a world view that aims to achieve private sector-driven growth but sees a facilitating role for the state, promotes engaging with the global economy in ways that advance development, and values pragmatism, experimentation, and evidence-based policymaking over ideology. 2012-03-19T18:40:42Z 2012-03-19T18:40:42Z 2010-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100629111506 http://hdl.handle.net/10986/3838 English Policy Research working paper ; no. WPS 5353 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |