Crises typically follow a sequence that begins with financial liberalization and/or financial innovation, during which innovation gets ahead of regulation and supervision, creating a 'wild west' in which the boom in credit, asset prices, economic activity, and current account deficit takes seed.

causalpending

Speaker

Carmen Reinhart

Evidence Quote

financial liberalisation financial innovation is been an important so this finite financial innovation and financial liberalisation facilitate credit availability

Source

Carmen Reinhart on Financial Crises 11/23/2009EconTalk
Created: 6/15/2026, 9:20:19 AM

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