Abstract
The interdependence of banks and governments, the inexorable sequence of banking booms and busts, and the prevalence of regulatory controls all have a centuries-long history. Developing and transition economies are confronted with the need for liberalization at a time when deregulation in the market economies has presaged costly bank failures. At the same time, although there is little reason to believe that the unregulated financial system is always for the best, the growing complexity of the world financial system begins to militate against successful policy activism.
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Honohan, P., Vittas, D. (1998). Financial Networks and Banking Policy. In: Wolf, H.C. (eds) Contemporary Economic Issues. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26072-0_5
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