Discussion Paper

No. 2007-33 | July 27, 2007
Growing up to Financial Stability


This lecture revisits the evidence on the incidence and severity of different varieties of financial crises within the context of globalization then (pre-1914) and now (1980 to the present). I then discuss the determinants of emerging market crises from the perspective of the recent balance sheet approach. This approach puts at center stage the importance of financial development. I then peel the onion back further and consider the “deep” institutional determinants of financial development and their relationship to financial stability. I conclude by conjecturing about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability.

Paper submitted to the special issue "Recent Developments in International Money and Finance" edited by Ronald MacDonald

JEL Classification:

F4, G2, N1, O1



Cite As

Michael D Bordo (2007). Growing up to Financial Stability. Economics Discussion Papers, No 2007-33, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2007-33

Comments and Questions

Anonymous - Referee Report
September 21, 2007 - 08:56

see attached file