Lessons from World Bank Research on Financial Crises

Development Research Group ()
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Development Research Group: The World Bank, Postal: 1818 H Street, N.W., Washington, DC 20433

No 4779, Policy Research Working Paper Series from The World Bank

Abstract: The benefits of financial development and globalization have come with continuing fragility in financial sectors. Periodic crises have had real but heterogeneous welfare impacts and not just for poor people; indeed, some of the conditions that foster deep and persistent poverty, such as lack of connectivity to markets, have provided a degree of protection for the poor. Past crises have also had longer-term impacts for some of those affected, most notably through the nutrition and schooling of children in poor families. As in other areas of policy, effective responses to a crisis require sound data and must take account of incentives and behavior. An important lesson from past experience is that the short-term responses to a crisis -- macroeconomic stabilization, trade policies, financial sector policies and social -- cannot ignore longer-term implications for both economic development and vulnerability to future crises.

Keywords: Financial crisis; macroeconomic response; social protection; poverty; safety nets (search for similar items in EconPapers)
JEL-codes: H53 I38 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2008-12-01
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4779

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