The Role of the State in Financial Markets

  title={The Role of the State in Financial Markets},
  author={J. E. Stiglitz},
  journal={The World Bank Economic Review},
  • J. Stiglitz
  • Published 1993
  • Economics
  • The World Bank Economic Review
This paper reexamines the role of the state in financial markets and identifies seven major market failures that provide a potential rationale for government intervention. In practice, government interventions in capital markets, even in industrial countries, have been pervasive. The paper provides a taxonomy of those interventions with respect to both the objectives they serve and the instruments they employ. There is a role for the government in financial markets, but the success of… Expand

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