The financial liberalization thesis emerged in the 1970s and has
been of considerable importance ever since, not merely in terms of
its theoretical influence but, perhaps more importantly, in terms
of its impact on policy makers and policy debates. Although it has
encountered increasing scepticism over the years, it nevertheless
had a relatively early impact on development policy, which still
continues unabated, through the work of the IMF and the World Bank.
The latter two institutions, perhaps in their traditional role as
promoters of what were claimed to be free market conditions, were
keen to encourage financial liberalization policies as part of more
general reforms or stabilization programmes. This book explores
what we have learned from the vast experience of the theoretical
and policy aspects of the financial liberalization.
General
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