Financial Convergence in Asia C.P. Chandrasekhar and Jayati Ghosh

The recent Asian experience with financial convergence suggests that financial proliferation largely facilitates new lines of business in financial services and affects the real economy more from the demand side through the debt-financed household expenditure it promotes. Thus excessive exposure to retail markets becomes a source of fragility in these countries just as it did in the developed countries.

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(This article was originally published in the Business Line on 3 September 2012)