Preventing the next financial crisis while financing sustainable development
Published on Fri, 2019-11-15 17:05
The global financial crisis has critically exposed the vulnerabilities of a liberalized, privately focused financial system. Governments worldwide intervened in such a system, providing support with an unprecedented range of measures including bailouts, nationalization of distressed financial institutions, mergers and recapitalization. However, many underlying structural conditions that led to the crisis were only partially addressed, if at all. As the past months exposed the worrisome combination of increasingly unsustainable debt levels, financial market volatility and currency instabilities, concerns for the possible eruption of another financial crisis have been on the rise. In the chapter by Kavaljit Singh, Madhyam, with the support of Stefano Prato, there are three key proposals could help preventing the next crisis while providing critical financing to sustainable development: explore the potential of development banks; restore the management of capital accounts within the standard policy toolkit of governments; and introduce a system of financial transaction taxes. By Kavaljit Singh, Madhyam, with the support of Stefano Prato, Society for International Development (SID). Read this chapter here. |
