Why do different countries have such different financial systems? Is one system better than the other? This text argues that the view that market-based systems are best is simplistic, and suggests that a more nuanced approach is necessary.
This collection examines the design of financial systems for central and eastern European countries engaged in the transition to market-based economies. It highlights the need for better approaches to measuring performance and providing incentives in banking and for financial mechanisms to encourage private-sector growth. Written by leading European and North American scholars, the essays apply modern finance theory and empirical data to the development of new financial sectors.
Premodern Financial Systems: A Historical Comparative sStudy describes (in quantitative terms whenever possible) the financial superstructure, such as the method of financing the government, and links it to the essential characteristics of the infrastructure of nearly a dozen societies ranging from Athens in the late fifth century BC to the United Provinces in the mid-seventeenth century. The main features of the financial superstructures discussed are the monetary system, the types of financial instruments and institutions, interest rates, and the methods of financing agriculture, non-agricultural business, households, foreign trade, and government. Aspects of the infrastructures covered include population, urbanization, prices, national output, wealth, and their sectoral and size distribution.