Abstract
A growing and deepening divide has opened up between transition countries where economic development has taken off and those caught in a vicious cycle of institutional backwardness and macroeconomic instability. This “Great Divide” is visible in almost every measure of economic performance: GDP growth, investment, government finances, growth in inequality, general institutional infrastructure and increasingly in measures of financial development. Strategies for financial development have differed dramatically across countries and over time, offering interesting opportunities to study the links between real and financial sector development.
Erik Berglof is Director, Stockholm Institute of Transition Economics (SITE), Stockholm School of Economics, Stockholm, Sweden. Patrick Bolton is Professor of Economics, Princeton University, Princeton, New Jersey, and Research Associate, National Bureau of Economic Research, Cambridge, Massachusetts. Both authors are Research Fellows, Centre for Economic Policy Research, London, United Kingdom.
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© 2004 Erik Berglof and Patrick Bolton
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Berglof, E., Bolton, P. (2004). The Great Divide and Beyond: Financial Architecture in Transition. In: Goodhart, C.A.E. (eds) Financial Development and Economic Growth. British Association for the Advancement of Science. Palgrave Macmillan, London. https://doi.org/10.1057/9780230374270_4
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DOI: https://doi.org/10.1057/9780230374270_4
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