From the end of Bretton Woods to the global financial crisis: 40 years of turbulence

Abstract

The Great Financial Crisis in 2008 did major damage to the world’s financial system and showed the importance of maintaining financial stability as a public policy goal. This chapter recalls how this issue has been addressed since the Great Depression in 1929. It also reflects on the impact of globalization, information technology, rise of institutional investors, and deregulation across the financial sector. Finally, it discusses the ever-growing complexity of the financial system and analyses whether the necessary reform process for banks and the financial infrastructure is complete.