The Russian Dolls of the Financial Crisis

Abstract

The global financial market is going through one of its sharpest crises in decades. As this issue of “Observatorio Económico” goes to press, the effects of the financial collapse and of the arrival of billions of taxpayer dollars to bail out the institutions that failed remain unclear. In
Latin America, Argentina is nationalizing the private pension funds and the main regional stock market indices are falling like stones. How did we get here? To answer that, it is worth first understanding the context. And part of that context is regulation and incentives. Continue reading...