les cahiers du mecas
Volume 3, Numéro 1, Pages 9-23
2007-04-30

Financial Liberalization In The Developing Countries:failures Of The Experiment And Theoretical Answers

Authors : Maazouz Mokhtar . Enayati Fatemah .

Abstract

During the 1970s and 1980s, many developing countries tried some policies of financial liberalization. Governments like those of Argentina, Chile and Uruguay released the interest rates, decreased controls on foreign capital, abolished programs of management the credits, privatized the commercial banks, and facilitated the entry of several national and foreign banks on the domestic banking market. But the results were the opposite of our expectations; these three experiments had serious problems. These countries were in a situation of financial instability in the financial as well as non-financial sectors.

Keywords

Financial liberalization, Reform Policy