A framework for financial market development
- 4 June 2010
- journal article
- research article
- Published by Taylor & Francis Ltd in Journal of Economic Policy Reform
- Vol. 13 (2), 107-135
- https://doi.org/10.1080/17487871003700804
Abstract
A framework for examining the process of financial market development is proposed. The framework is anchored in studying the incentives facing the key players in financial markets – borrowers, lenders, liquidity providers, and regulators – whose actions determine whether and how markets develop. While different financial instruments embody different concessions by borrowers and lenders, the framework emphasizes two main compromises: the tradeoffs between maturity and collateral, and between seniority and control in the sequencing of market development.Keywords
Other Versions
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