Financial regulation and supervision in many countries have concomitantly become more sophisticated and effective. Financial crises and instability have by no means been eliminated, but the more liberalized financial environment does offer the promise of long-term stability. Although there is much congruence in both policy prescription and analytical approach, many issues remain to be resolved. The dangers of over- and underregulation are recognized in theory, but the difficulties of deciding what they are in practice are formidable. Some contributors would push toward liberalization much faster than others.
None has a clear answer to the problem of the massive debts afflicting many countries.
How to deal with the poorly mobilized sectors of the population that have been largely excluded from access to financial services also remains elusive. Even if the world s financial system has grown stronger, critical issues of equity, stability, efficiency, and safety continue to bedevil policymakers and challenge the ingenuity of analysts. Previously, she worked at the Harvard Institute for International Development and at the Federal Reserve Bank of New York.