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Comparing Financial Systems : Comparing Financial Systems - Franklin Allen

Comparing Financial Systems

Comparing Financial Systems

Paperback Published: 26th January 2001
ISBN: 9780262511254
Number Of Pages: 520
For Ages: 18+ years old

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Financial systems are crucial to the allocation of resources in a modern economy. They channel household savings to the corporate sector and allocate investment funds among firms; they allow intertemporal smoothing of consumption by households and expenditures by firms; and they enable households and firms to share risks. These functions are common to the financial systems of most developed economies. Yet the form of these financial systems varies widely. In the United States and the United Kingdom competitive markets dominate the financial landscape, whereas in France, Germany, and Japan banks have traditionally played the most important role.Why do different countries have such different financial systems? Is one system better than all the others? Do different systems merely represent alternative ways of satisfying similar needs? Is the current trend toward market-based systems desirable?Franklin Allen and Douglas Gale argue that the view that market-based systems are best is simplistic. A more nuanced approach is necessary. For example, financial markets may be bad for risk sharing; competition in banking may be inefficient; financial crises can be good as well as bad; and separation of ownership and control can be optimal. Financial institutions are not simply veils, disguising the allocation mechanism without affecting it, but are crucial to overcoming market imperfections. An optimal financial system relies on both financial markets and financial intermediaries.

"This excellent book is a must-read for anyone interested in an in-depth understanding of how financial systems have evolved in different countries and how they affect resource allocation and economic development." - Anjan Thakor, Edward J. Frey Professor of Banking and Finance, University of Michigan Business School"

Preface
Setting the Stagep. 1
Comparing Financial Systemsp. 3
The Historical Development of Financial Systemsp. 25
Institutions and Marketsp. 47
Corporate Governancep. 79
The Limitations of Markets: The Classical Viewp. 127
Competition Versus Insurancep. 151
Intertemporal Smoothingp. 153
Information and Resource Allocationp. 191
Competition in Bankingp. 231
Financial Crisesp. 271
Renegotiation and Relationshipsp. 315
The Role of the Firmp. 339
Autonomous, Self-Financing Firmsp. 341
Objectives of Firmsp. 375
Markets and Intermediariesp. 401
Diversity of Opinion and Resource Allocationp. 403
Costly Marketsp. 439
Relationships and Risk Sharingp. 469
Afterwordp. 497
Indexp. 503
Table of Contents provided by Blackwell. All Rights Reserved.

ISBN: 9780262511254
ISBN-10: 0262511258
Series: Comparing Financial Systems
Audience: Professional
For Ages: 18+ years old
Format: Paperback
Language: English
Number Of Pages: 520
Published: 26th January 2001
Publisher: MIT Press Ltd
Country of Publication: US
Dimensions (cm): 15.5 x 22.8  x 2.3
Weight (kg): 0.68