The global recession has strongly affected the credibility of the international banking system, damaging also the real economy. Developing countries, not fully integrated with international markets, seem less affected and local microfinance institutions might also allow for a further shelter against recession, even if foreign support is slowing down and collection of international capital is harder and more expensive. Intrinsic characteristics of microfinance, such as closeness to the borrowers, limited risk and exposure and little if any correlation with international markets have an anti-cyclical effect. In hard and confused times, it pays to be little, flexible and simple.
|Titolo della pubblicazione ospite||Credit, Currency, or Derivatives: Instrumentsof Global Financial Stability Or crisis?,|
|Editor||Michael G. Papaioannou J. Jay Choi|
|Numero di pagine||50|
|Stato di pubblicazione||Pubblicato - 2009|