A success of this measure was evident by the immediate improvement in the liquidity situation, including a substantial net inflow of funds in the days after the guarantee was introduced, and the ability of a number of the covered institutions subsequently to raise longer-term finance on the international markets.
To answer these questions, we can draw on a large body of empirical (and theoretical) evidence that can give us guidance for financial sector reform. Let me start with the evidence we have on the link between financial development and growth. 1. Financial development and growth  In the 1990s, there was a widespread consensus that financial development fosters economic growth.