The Global Financial Crisis and Development Thinking

Rogers, F. Halsey

dc.creator	Rogers, F. Halsey
dc.date	2012-03-19T18:40:42Z
dc.date	2012-03-19T18:40:42Z
dc.date	2010-06-01
dc.date.accessioned	2023-02-17T21:04:30Z
dc.date.available	2023-02-17T21:04:30Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100629111506
dc.identifier	http://hdl.handle.net/10986/3838
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244802
dc.description	The global financial crisis has not only dealt a major blow to the global economy, but also shaken confidence in economic management in the developed world and the economic models that guide it. The crisis has revealed major market failures, especially in the housing bubble and its transmission to the financial system, but also glaring state failures that propagated and exacerbated the crisis. Will the events of the past two years lead to major shifts in thinking about development economics, and should they? This paper assesses that question for several key domains of development thinking, including the market-state balance, macroeconomic management, globalization, development financing, and public spending. On the one hand, changed global circumstances and new awareness of vulnerability should lead to some policy changes, as developing countries take steps to reduce and buffer risks, including risks generated in developed countries. At the same time, the crisis should largely reinforce the Post-Washington Consensus on development that has emerged over the past decade -- a world view that aims to achieve private sector-driven growth but sees a facilitating role for the state, promotes engaging with the global economy in ways that advance development, and values pragmatism, experimentation, and evidence-based policymaking over ideology.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5353
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACTIVE MARKETS
dc.subject	ADMINISTRATIVE CONTROL
dc.subject	ADVANCED ECONOMIES
dc.subject	ARBITRAGE
dc.subject	ASSET PRICE
dc.subject	ASYMMETRIC INFORMATION
dc.subject	AVERAGE PRODUCTIVITY
dc.subject	BAILOUT
dc.subject	BAILOUTS
dc.subject	BANK POLICY
dc.subject	BANKING SYSTEM
dc.subject	BANKRUPTCY
dc.subject	BOND
dc.subject	BOND RATING
dc.subject	BORROWER
dc.subject	CAPITAL ACCOUNT
dc.subject	CAPITAL ACCOUNT LIBERALIZATION
dc.subject	CAPITAL ACCOUNTS
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL MARKETS
dc.subject	CENTRAL BANK
dc.subject	CENTRAL BANKS
dc.subject	CLIMATE CHANGE
dc.subject	COMMERCIAL BANKS
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	CONSUMERS
dc.subject	CORPORATE GOVERNANCE
dc.subject	COST-BENEFIT
dc.subject	CREDIT AVAILABILITY
dc.subject	CREDIT LINE
dc.subject	CRISIS COUNTRIES
dc.subject	CURRENCY
dc.subject	CURRENT PRICES
dc.subject	DEBT
dc.subject	DEBT CRISIS
dc.subject	DEBT FINANCING
dc.subject	DEBT LEVELS
dc.subject	DEBTS
dc.subject	DEFAULT RISK
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT POLICY
dc.subject	DEVELOPMENT STRATEGIES
dc.subject	DEVELOPMENT STRATEGY
dc.subject	DOMESTIC MARKETS
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC CRISES
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC MODELS
dc.subject	ECONOMIC OUTLOOK
dc.subject	ECONOMIC POLICIES
dc.subject	ECONOMIC PROBLEMS
dc.subject	ECONOMIC RESEARCH
dc.subject	ECONOMIC THOUGHT
dc.subject	EFFICIENT MARKET
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKETS
dc.subject	EQUITY FINANCING
dc.subject	EXCESS RETURNS
dc.subject	EXCHANGE RATE
dc.subject	EXOGENOUS SHOCKS
dc.subject	EXPORT GROWTH
dc.subject	EXPORT VOLUMES
dc.subject	EXPORTERS
dc.subject	EXPORTS
dc.subject	EXTERNAL BORROWING
dc.subject	EXTERNAL DEBT
dc.subject	EXTERNAL SHOCKS
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE BANK
dc.subject	FINANCES
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL INCENTIVES
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL LIBERALIZATION
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL POLICIES
dc.subject	FINANCIAL POLICY
dc.subject	FINANCIAL REGULATION
dc.subject	FINANCIAL RISK
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL SYSTEM
dc.subject	FISCAL DEFICIT
dc.subject	FISCAL DEFICITS
dc.subject	FISCAL POLICIES
dc.subject	FISCAL POLICY
dc.subject	FOREIGN BANKS
dc.subject	FOREIGN CAPITAL
dc.subject	FOREIGN DEBT
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN INVESTORS
dc.subject	FULL EMPLOYMENT
dc.subject	GDP
dc.subject	GLOBAL CAPITAL
dc.subject	GLOBAL DEVELOPMENT FINANCE
dc.subject	GLOBAL ECONOMY
dc.subject	GLOBAL MARKETS
dc.subject	GLOBAL RECESSION
dc.subject	GLOBAL TRADE
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT ACTION
dc.subject	GOVERNMENT REGULATION
dc.subject	HEALTH SERVICES
dc.subject	HEDGE FUNDS
dc.subject	HOME OWNERSHIP
dc.subject	HOST COUNTRIES
dc.subject	HOUSEHOLD SAVING
dc.subject	HOUSING
dc.subject	HOUSING FINANCE
dc.subject	HOUSING PRICES
dc.subject	HUMAN DEVELOPMENT
dc.subject	IMPERFECT INFORMATION
dc.subject	IMPORTS
dc.subject	INCOME
dc.subject	INCOME GROWTH
dc.subject	INCOME LEVELS
dc.subject	INDUSTRIALIZATION
dc.subject	INFLATION
dc.subject	INFLATION RATES
dc.subject	INFORMATION ASYMMETRIES
dc.subject	INFORMATION TECHNOLOGY
dc.subject	INFORMED INVESTORS
dc.subject	INSTITUTIONAL ENVIRONMENT
dc.subject	INSURANCE
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL FINANCIAL INSTITUTIONS
dc.subject	INTERNATIONAL PORTFOLIO
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTING
dc.subject	INVESTMENT BANKS
dc.subject	INVESTMENT CLIMATE
dc.subject	KEYNESIAN ECONOMICS
dc.subject	LEVY
dc.subject	LIQUIDITY
dc.subject	LOAN
dc.subject	LOAN MARKETS
dc.subject	LOWER PRICE
dc.subject	MACROECONOMIC MANAGEMENT
dc.subject	MACROECONOMIC POLICY
dc.subject	MACROECONOMIC RISKS
dc.subject	MACROECONOMIC STABILITY
dc.subject	MACROECONOMIC VOLATILITY
dc.subject	MACROECONOMICS
dc.subject	MARKET DEVELOPMENT
dc.subject	MARKET ECONOMY
dc.subject	MARKET EFFICIENCY
dc.subject	MARKET FAILURES
dc.subject	MARKET FOR SECURITIES
dc.subject	MARKET MECHANISM
dc.subject	MARKET PARTICIPANTS
dc.subject	MARKET PLAYERS
dc.subject	MARKET PRICES
dc.subject	MARKET SIZE
dc.subject	MATURE MARKETS
dc.subject	MONETARY ECONOMICS
dc.subject	MONETARY FUND
dc.subject	MONETARY POLICY
dc.subject	MORTGAGE
dc.subject	MORTGAGE DEBTS
dc.subject	MORTGAGE-BACKED SECURITIES
dc.subject	NATIONAL SAVING
dc.subject	NEGATIVE EXTERNALITIES
dc.subject	NEOCLASSICAL MODELS
dc.subject	NET EXPORTS
dc.subject	OLIGARCHY
dc.subject	PEER PRESSURES
dc.subject	PENSION
dc.subject	POLICY ADVICE
dc.subject	POLICY RESPONSES
dc.subject	POLITICAL ECONOMY
dc.subject	PORTFOLIO CAPITAL
dc.subject	PORTFOLIO INVESTMENT
dc.subject	PORTFOLIOS
dc.subject	PRICE SERIES
dc.subject	PRODUCT MARKETS
dc.subject	PROFITABILITY
dc.subject	PROPERTY RIGHTS
dc.subject	PRUDENTIAL REGULATION
dc.subject	PUBLIC AGENCIES
dc.subject	PUBLIC POLICY
dc.subject	PUBLIC SERVICES
dc.subject	PUBLIC SPENDING
dc.subject	RATING AGENCIES
dc.subject	REAL EXCHANGE RATE
dc.subject	REGULATOR
dc.subject	REGULATORS
dc.subject	REGULATORY AGENCIES
dc.subject	REGULATORY AGENCY
dc.subject	REGULATORY GAPS
dc.subject	REGULATORY INFRASTRUCTURE
dc.subject	REGULATORY STRUCTURE
dc.subject	REGULATORY STRUCTURES
dc.subject	RESERVES
dc.subject	RESOURCE ALLOCATION
dc.subject	RETIREMENT
dc.subject	RETURN
dc.subject	RETURNS
dc.subject	RISKY ASSETS
dc.subject	SAVINGS
dc.subject	SAVINGS BEHAVIOR
dc.subject	SHORT-TERM CAPITAL
dc.subject	SHORT-TERM LIQUIDITY
dc.subject	SOLVENCY
dc.subject	STATE FAILURES
dc.subject	STATE INTERVENTION
dc.subject	SUPPLY SHOCKS
dc.subject	SWAPS
dc.subject	SYSTEMIC RISK
dc.subject	TAX
dc.subject	TRADING
dc.subject	UNCERTAINTIES
dc.subject	UNDERLYING PROBLEMS
dc.subject	UNEMPLOYMENT
dc.subject	VALUATION
dc.subject	VALUATIONS
dc.subject	VALUE AT RISK MODELS
dc.subject	WEALTH
dc.subject	WEALTH EFFECTS
dc.subject	WORLD ECONOMY
dc.title	The Global Financial Crisis and Development Thinking
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region